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Hawaiian authorities have approved Pacific Biodiesel Technologies’ (PBT) contract to supply biodiesel to Hawaiian Energy (HE), primarily for use at its power plants on the island of O’ahu.

According to Hawaii Public Utilities Commission, the contract was approved after it was determined that the proposed price for the biodiesel was reasonable, the diesel will be produced locally, and should contribute positively to the local economy.

PBT will supply HE with between 2-3 million gallons of biodiesel annually at a price lower than in HE’s supply agreement with the Renewable Energy Group (REG).

The contract with REG is set to end in November as the new two-year PBT contract comes into effect.

The fuel will be produced from waste cooking oil and other local waste feedstocks.

Pacific Biodiesel also is currently under contract to supply biodiesel for the state-owned Honolulu Airport emergency generation Facility.

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