Hawaiian Electric Co. has selected Pacific Biodiesel Inc. to supply locally produced biodiesel for an emergency power generation system at Honolulu International Airport.

Maui-based Pacific Biodiesel will provide HECO with at least 250,000 gallons of made from locally recycled cooking oil under the three-year contract, the companies said. The biodiesel will be burned in an 8-megawatt generating station scheduled to be completed in October 2010.

The four generating units at the facility will feed electricity into the HECO grid during normal operations, but will be isolated to power the airport exclusively during an emergency, HECO said.

The price of the biofuel will be indexed to a benchmark, which HECO did not disclose. The contract is subject to approval by the Public Utilities Commission.