AES Hawaii Inc., Oahu’s only coal-fired power plant, said it is looking to get out of the fossil fuel business eventually.
Jeff Vaughan, manager of AES Hawaii, said he wants to convert the plant to burn organic matter, such as wood. Vaughan made the comment at a BioEconomy Forum at the state capitol Tuesday.
“We’re trying to navigate our way to 100 percent renewable,” Vaughan said. “We have the ability to burn biomass, and that is where we are looking going forward.”
AES has to end its use of coal in Hawaii before 2045. That’s when the state will require that 100 percent of its electric power come from renewable energy sources.
The AES power plant can provide up to 20 percent of the island’s energy and can respond quickly to Hawaiian Electric Co.’s needs. AES is also the cheapest source of power on Oahu. It has been operational since 1992 and is one of eight independent power producers that sell energy to HECO.
Vaughan did not provide a timeline for the conversion, but said the facility has tested burning eucalyptus wood and wood from the PVT Land Co., a construction and demolition landfill in Waianae.
At the event, Gov. David Ige said biofuel is going to be an important renewable fuel as the state works toward its 2045 goal since biofuel will provide consistent power to the grid.
“Biofuel is really important to give us firm power,” he said, “Most importantly, rather than spending these dollars out of state, we can reinvest it into our economy to create jobs and other opportunities of our people.”
The state has been pushing for biofuel adoption. This month the Department of Business, Economic Development and Tourism announced it is accepting submissions from renewable fuel producers interested in cashing in on Hawaii’s new renewable fuels tax credit.
IGE established a renewable fuels production tax credit in 2016. The credit allows producers of renewable fuels to claim a credit for a period of up to five consecutive years.
Alan Oshima, president of HECO, said burning fuel is necessary for the islands.
“If we’re going to be renewable, biofuel does have a role,” Oshima said. “It cannot be one company’s dream. It takes everyone working together to reach something like this in an island society.”
Oshima said there are issues with transporting the biofuels between the neighbor islands as that can double the cost.
“Honolulu is the majority of the need and the population,” he said. “However, the land and the renewable resources lie primarily on our neighbor islands where there is less of a need.”
