Gov. David Ige and the renewable-energy community applauded Hawaii Gas Co.’s announcement Friday that the utility is looking for suppliers of renewable gas.
The utility released a request for proposals to purchase raw biogas and bio-methane, the resource readily available from municipal wastewater treatment centers and landfills. Hawaii Gas would blend the renewable natural gas with the synthetic natural gas and liquefied natural gas it already uses.
“Adding renewable natural gas to our fuel mix is an important priority that will contribute to advancing Hawaii’s clean-energy future,” said Alicia Moy, president and CEO of Hawaii Gas.
On Oahu there is the equivalent of 4 million to 5 million gallons of gasoline in biogas, said Joseph Boivin Jr., senior vice president of business development and corporate affairs for Hawaii Gas. Boivin estimated there is another 1 million to 3 million gallons available at other counties’ wastewater treatment plants.
Hawaii Gas has been working with the City and County of Honolulu for the past three years. Boivin said Hawaii Gas responded to a request from the city last year for proposals to capture biogas from the Honouliuli Wastewater Treatment Plant.
“My hope is that all of the counties will realize that Hawaii Gas has a need for it and is willing to pay market price,” Boivin said.
Hawaii Gas said it is looking for bids from local and national suppliers, but there will be a preference to local suppliers.
Boivin said it was “mostly because we know that the locally produced gas will be inherently cheaper than anyone can supply from the mainland.”
Hawaii Gas said it plans to enter into one or more fuel-supply agreements for renewable natural gas, depending on approval from the state Public Utilities Commission. The term of the agreements would be for a minimum of five years and a maximum of 20 years.
Hawaii Gas, which has 68,000 customers statewide, supplies gas to residents, food-service providers, military bases, the hospitality industry, health care facilities, schools, the government and agriculture operations.
Ige said that Hawaii Gas’ decision will help the state reach its 100 percent renewable-energy goal.
“We appreciate Hawaii Gas’ efforts to assess options for renewable natural gas supplies in Hawaii, which will help the state’s long-term objective of reducing fossil fuel imports,” Ige said.
Renewable-energy organizations said they support Hawaii Gas’ choice to use local and renewable fuel.
“It is great to see Hawaii Gas reaching out to procure a local renewable gas,” said Jeff Mikulina, executive director of Blue Planet Foundation. “This is exactly the sort of business the gas company should be in, finding local supplies, be it renewable natural gas or even hydrogen.”
Ulupono Initiative, a renewable-energy group, said the announcement shows that Hawaii Gas’ leadership is making its support for renewable energy real.
“There are proven technologies for converting biomass to renewable gas through either gasification or anaerobic digestion,” said Kyle Datta, a general partner at Ulupono. “We are confident that the market can respond to the Hawaii Gas (request for proposals) at affordable prices. This renewable gas would displace refinery fuel and lower our overall dependence on oil and tackle the need to use fossil fuels to generate industrial heat.”
Not all energy and environment stakeholders were impressed by the news.
“This is good but this isn’t anything new,” Sierra Club of Hawaii Director Marti Townsend said. “Several years ago there was a push to encourage Hawaii Gas to seek out more renewable sources. It’s right in line with what they already committed with previous CEO Jeff Kissel.”
Boivin also said that the utility is also looking to partner with landowners to grow crops to be used as a biogas.
