Hawaiian Electric Company May Switch to Burning Wood Pellets From Fuel Oil for Energy

The Hawaiian Electric Company is currently in discussion with Zilkha Biomass Energy, a Huston based company, and is considering using Zilkha's compressed wood pellets instead of burning fuel oil to generate electricity.  According to one estimate, HECO would save over 30 percent of its fuel costs by making the switch.  More importantly, the wood pellets are a form of biomass, which would count as a renewable energy source.  HECO has stated that they are committed to generating 40 percent of their electricity from a renewable source by 2030.  Peter Rosegg, spokesman for the Hawaiian Electric Company, stated, "We have met with representatives of Zilkha Biomass. No commitments have been made at this time. It is a promising technology but further study and evaluation are needed to determine whether this option provides a cost benefit to our customers."

The Blue Planet Foundation which has opposed the Hawaiian Electric Company's previous suggestion of burning liquefied natural gas (LNG) has given its support to the burning of wood pellets.  Executive Director for Blue Planet Foundation, Jeff Mikulina, stated, "This is exciting to us because much of the conversation to date has been about how renewables are great, but we need LNG to lower prices long term. To some it is almost fait accompli that LNG is our logical future fuel.  But Zilkha's, and similar companys', offerings can change the conversation. Here's something that not only is renewable and helps HECO comply with RPS (renewable portfolio standards), the EPA regs, and the state (greenhouse emissions) law, but it could be cheaper and available sooner than LNG."

Source: Honolulu Star Advertiser, 1-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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