Par Pacific plans 30 MW cogeneration facility as local outlet for biofuels from Kapolei refinery

Par Pacific Holdings plans to build a new 30-megawatt cogeneration facility and use hydrotreated biofuel produced at its Kapolei refinery (shown here), the hydrotreater-conversion project at which is scheduled for commissioning in 2025, to help fuel the plant. (Photo: Par Pacific Holdings Inc.)

Par Pacific Holdings Inc. announced Dec. 8 that its 30-megawatt renewable cogeneration development project was selected as a finalist by Hawaiian Electric in connection with a January 2023 request for proposals for firm, renewable-fired electricity generation.

The project will be constructed at the company’s Kapolei refinery and take advantage of existing infrastructure.

It will also provide a local outlet for a portion of the renewable liquid fuels produced by the previously announced renewable hydrotreater-conversion project.

The quick-start cogeneration facility is expected to begin commercial operations by 2028, supporting the state’s renewable energy objectives.

“We are excited to advance our renewable initiatives in support of Hawaii’s decarbonization goals,” said Will Monteleone, president of Par Pacific. “The cogeneration project aligns with our renewables strategy of investing in our people and assets to meet the evolving energy needs of our communities.”

The project plans to utilize the latest generation of high-efficiency equipment to flexibly produce renewable power.

At full capacity, the facility will be capable of generating enough power to supply 30,000 homes.  

Final terms and conditions of the potential investment and offtake agreement with Hawaiian Electric are expected to be negotiated during 2024.

The project will remain subject to customary regulatory and government approvals, including approval by the Hawaii Public Utility Commission.

“A reliable, affordable and low-carbon source of energy is important to all of us in Hawaii,” said Eric Wright, president of Par Hawaii. “Par Hawaii is proud to be partnering with Hawaiian Electric to generate electricity from low-carbon, renewable sources.”

In April, Par Pacific announced a $90 million investment to develop the state’s largest liquid renewable fuels manufacturing facility.

The project, which is expected to be commissioned in 2025, will produce approximately 61 million gallons per year of sustainable aviation fuel, renewable diesel, renewable naphtha, and renewable liquified petroleum gases.