Hawaiian Electric asks REG to continue to supply it for three more years with 3-7 million gallons/year of biodiesel, which is used to power a 110-MW combustion turbine generator at Campbell Industrial Park

HONOLULU , November 1, 2011 (press release) – Hawaiian Electric Company has again selected Renewable Energy Group® (REG), the nation’s largest biodiesel producer, to supply sustainable biodiesel for Hawaiian Electric’s 110-megawatt combustion turbine generator at Campbell Industrial Park Generating Station.

REG, which currently supplies biodiesel to the generating station, will continue to supply three to seven million gallons of high quality biodiesel annually for three additional years. Like the current supply contract, the biodiesel will be processed from used cooking oil and waste animal fats. The new contract was awarded as a result of a request for competitive bids issued in February 2011.

As with all Hawaiian Electric fuel agreements, the contract will be submitted to the Hawaii Public Utilities Commission (PUC) for review, with input from the Hawaii Division of Consumer Advocacy. The present contract runs through July 2012. If approved, the new contract would take effect at that time.

The Campbell Industrial Park Generating Station is the first utility-scale combustion turbine run entirely on biodiesel. With its rapid response capability, it is an essential part of the Hawaiian Electric system, supplying needed reserves during peak demand periods and as needed at other times.

“We are proud to continue our partnership with Hawaiian Electric Company, a progressive, sustainable leader in the electric utility generation business,” said Daniel J. Oh, REG president & CEO.

“According to the U.S. Energy Information Administration, more than 510 million gallons of foreign petroleum are burned each year for electric power generation. The state should be commended for its leadership in creating a model for other utility companies across the country to follow.”

"We are committed to beating the legal requirement of 40 percent of electricity from renewable sources by 2030," said Robbie Alm, Hawaiian Electric executive vice president. "We need to bring as much clean energy online as soon as possible.

Our customers have been vulnerable to the price swings in fossil fuels for too long and this contract is another step in the right direction of more stable energy prices.”

"We must pursue every renewable resource available -- the sun, wind, geothermal, ocean energy and more – and take advantage of our unique ability to substitute ‘green’ biofuels in place of ‘black’ oil in our generating units," Alm said.

Renewable Energy Group operates a national network of biodiesel production with the capacity to produce more than 210 million gallons of biodiesel per year. REG is America’s largest producer of biodiesel, a commercially-available, domestically produced Advanced Biofuel. As a member of the National Biodiesel Board, REG adheres to the industry’s Biodiesel Sustainability Principles found at www.biodieselsustainability.com.

Renewable Energy Group® is the nation’s largest biodiesel producer with a nationwide distribution and logistics system. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 210 million gallons of owned/operated annual production capacity at bio-refineries across the country, REG® is a proven biodiesel partner in the distillate marketplace.

For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. REG-9000® branded biodiesel offers more stringent standards than ASTM D6751. To learn more about please visit www.REGI.com.

Hawaiian Electric Company and its subsidiaries, Maui Electric Company and Hawaii Electric Light Company, serve more than 400,000 customers on the islands of Oahu, Hawaii, Maui, Lanai and Molokai, home to 95% of Hawaii’s people. It is a subsidiary of Hawaiian Electric Industries (NYSE: HE). For more information, visit www.heco.com.

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