(ABOVE PHOTO) Recent photo of the future site of Hu Honua Bioenergy in Pepeekeo, courtesy Hastings & Pleadwell.

NEWS BRIEF

• Hu Honua Bioenergy announced today that the company has reached a settlement with Hawaiian Dredging Construction Company, resolving a contractual dispute between the parties related to the refurbishment of Hu Honua’s planned renewable energy facility in Pepeekeo.
• Specific terms of the settlement are covered by a confidentiality agreement.
• Hu Honua says it will resume onsite operations with a full team of employees and contractors before year-end, “including final site preparation, delivery of specialized equipment and construction mobilization.”

INSIGHTS

Hu Honua Bioenergy is refurbishing the former sugar mill power plant at Pepeekeo into a modern biomass electricity generation facility and already has a twenty-year power purchase agreement in place with Hawaiian Electric Light Company. However, progress hit a snag when Hawaiian Dredging took Hu Honua to court. Also, in February of this year the U.S. Environmental Protection Agency issued a ruling in favor of a group contesting the operating permit for the proposed project that was issued by the Clean Air Branch of the Hawaii Department of Health.

PRIMARY SOURCES

Portion of the media release issued today by representatives of Hu Honua:

“We are pleased to be back on course, moving forward with construction and to resume full site activity,” said John G. Sylvia, Chief Executive Officer for Hu Honua. “As we have stated previously, there were a number of complicated issues across multiple parties that required time to resolve for the settlement; we appreciate HDCC’s patience and efforts in working through the challenges.”

Refurbishment activity, including survey and permitting work, has been underway for the final phase of construction, which is expected to be complete within 12 months, following full mobilization.

In late October, HHB received two shipments of specialized equipment in Hilo—a custom re-injection system and air quality emission control operating system. HHB designed a re-injection system for the brackish water to return to its original source after it has passed through the system’s condenser and cooled the turbine’s exhaust steam. The air quality system will maximize overall system efficiency and lower emissions beyond what is required by regulators.

Additional specialized equipment including fuel handling and the remaining emissions control equipment has been fabricated and is in route to Hilo from the mainland. Hu Honua Bioenergy media release on Dec. 19, 2014

Rendering of the future facility in Pepeekeo by Hu Honua Bioenergy.