The parent company of Hawaiian Electric no longer owns a Hawaii island power plant that had major operational problems in 2024 and was a drain on recent company finances.
Hawaiian Electric Industries Inc. on March 10 sold the Hamakua Energy Plant to a subsidiary of Alabama-
based Harbert Management Corp.
A price was not disclosed, but HEI said the sale is not expected to have a material impact on company finances.
The 60-megawatt plant was the second-biggest power generation facility on Hawaii island, and unexpected shutdowns in 2024 contributed to a $55 million operating loss in 2024 for the HEI subsidiary that owned the plant.
HEI said in a recent financial report that the $55 million operating loss in 2024 for subsidiary Pacific Current compared with a $3 million operating loss in 2023, and was partly due a
$35.2 million impairment loss on certain assets, a
$4.9 million Hamakua Energy turbine repair and
reduced performance at
Hamakua Energy due to unexpected shutdowns caused by contaminated fuel.
Hamakua Energy has three turbines, and two of them that run on biodiesel fuel sustained damage that resulted in a plant shutdown in February 2024.
One new turbine that cost $8.3 million to purchase and install began operating in June. A second turbine, which was leased, returned to service in September and restored Hamakua Energy to full operating capacity. HEI’s estimated cost to repair the leased turbine was $4.9 million at the end of 2024, and the company said it was working with legal counsel and an insurance company to recover damages.
HEI had owned Hamakua Energy since 2017, when it purchased the facility from
a private equity firm and
assumed a contract to sell power to Hawaiian Electric through 2030.
Harbert is an investment management firm focusing on opportunistic acquisitions of “alternative assets” in partnership with clients that include foundations,
endowments, pension funds, financial institutions, insurance companies and high-net-worth individuals.
The company’s investments include a stake in
the 208-megawatt Kalaeloa Partners LP power plant on Oahu since 1997, according to HEI.
“Harbert has enjoyed a long relationship with Hawaiian Electric and looks to build on that through this acquisition,” Claude Estes, a Harbert senior managing director, said in a statement. “We are excited to be a part of the state’s energy future and to serve the residents of the Island of Hawaii.”
