Chevron Corp. is expanding its renewable energy effort in Hawaii with the planned development of a utility-scale solar photovoltaic project near its Campbell Industrial Park refinery that would provide up to 1 megawatt of generating capacity for Oahu’s electrical grid.

Chevron estimates the amount of electricity produced by the project will take the place of up to 10,000 barrels of oil a year that would have otherwise been burned by Hawaiian Electric Co. to generate power.

A draft environmental assessment for the project prepared by Chevron was published Tuesday by the state Office of Environmental Quality Control.

The renewable energy project is the second announced for Hawaii this year by Chevron Technology Ventures, Chevron’s research and development team. CTV in February said it was proceeding with a solar thermal demonstration project at the Campbell Industrial Park refinery that will reduce the use of fossil fuels and produce heat and steam for internal use.

Chevron’s proposed PV project would take up about 4.5 acres of a 10-acre parcel owned by Chevron at the southern end of Campbell Industrial Park near the ocean. It is the latest in a string of utility-scale PV projects already built or in the planning stages for the Kalaeloa-Kapolei area.

In addition to reducing oil consumption, the Chevron project would cut carbon dioxide emissions by 5,000 tons a year, according to the draft environmental assessment. A 1-megawatt PV project in Hawaii has enough generating capacity to serve about 200 homes using 600 kilowatt-hours a month.

"While the proposed (PV project) and increased renewable energy projects will not eliminate the need for fossil fuels generated energy, it will increase electricity sources from renewable energy," Chevron said in the environmental assessment.

Chevron will sell the electricity to Hawaiian Electric Co. under the Tier 3 category of utility’s feed-in tariff program. HECO pays Tier 3 producers 19.7 cents a kilowatt-hour for electricity generated under the FIT program.

The residential rate HECO is charging its Oahu customers in April is 32.4 cents a kilowatt-hour.

Company officials said the environmental impact of the project is expected to be minimal because it is being proposed for an area that had previously been limited to industrial uses.