Phycal, Hawaii Electric ink algal biodiesel offtake deal

October 3, 2011 |

In Hawaii, Hawaiian Electric has reached agreement with Phycal for delivery of 100,000 to 150,000 gallons of algae-based biofuel by April 2014,  for testing at Kahe Generating Station. The biofuel will be provided at a fixed price not tied to the price of fossil fuels.

The contract must be reviewed and approved by the Hawaii Public Utilities Commission with input from the State Consumer Advocate. Hawaiian Electric and Phycal expect a subsequent agreement for up to three million gallons per year for three years for a full-scale demonstration project to build upon the anticipated success of the algae-based biofuel testing at Kahe.

Phycal plans to design, permit, build and operate a 34-acre pilot farm near Poamoho Camp in Wahiawa, Oahu that will use carbon dioxide from industrial producers on Oahu. The algae will then be harvested and their oils extracted, using Phycal’s patented processes, and converted into renewable biofuel. Phycal expects to break ground for the pilot farm in late 2011 or early 2012.

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Category: Fuels

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