Alaska Airlines to buy biofuel from Hawaii company

Alaska Airlines has signed a contract to buy biofuel for its aircraft from Hawaii BioEnergy LLC.

Neither the terms nor the value of the contract were disclosed, however, Hawaii BioEnergy plans to ramp up production to begin sales of sustainable biofuel possibly as early as 2018, according to a statement.

Hawaii BioEnergy plans to use locally grown feedstocks to produce biofuels, and comprises three of Hawaii’s largest landowners and three venture capital companies.

The biofuel will likely be based on woody biomass, consistent with sustainability standards set by the Roundtable for Sustainable Biofuels.

The airline is Hawaii BioEnergy’s second customer, but is the first to sign a contract, according to a statement.

Hawaiian Electric Co. previously announced an agreement to purchase 10 million gallons of fuel each year from Hawaii BioEnergy, under a deal pending approval by the Public Utilities Commission.