Shell, HR Biopetroleum form JV to produce algae oil in Hawaii

In Hawaii, Royal Dutch Shell and HR Biopetroleum will construct an algae-oil production facility to produce feedstocks for biodiesel.

The companies created a joint venture, called Cellana, to construct a pilot plant in Hawaii, but the production capacity and location was not disclosed.

Hawaii has been at forefront of efforts to adopt second-generation biodiesel feedstocks. Although the state is exempted from the US Renewable Fuel Standard, Hawaii has an E10 mandate on the ethanol side, and all diesel and gasoline is imported and is costly. Efforts to date have revolved around jatropha and kukui nut cultivation.

In August, the Honolulu Advertiser ran an article on Hawaii Electric’s call for more research on jatropha and kukui nuts as biodiesel feedstocks. Hawaii Electric is building a new power plant, its first in 17 years, and proposes to run the plant on biodiesel. The company is the largest consumer of petroleum diesel in the state.

Earlier in the fall, Hawaii County Economic Opportunity Council received a $677,000 grant for producing jatropha plant seedlings that will be used for biodiesel production in the state. The project will produce 3 million seedlings.

Also, BlueEarth Biofuels is developing a 40 million gallon biodiesel refinery at Waena, on the Kahului side of the Island of Maui.

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