Construction ramps up at Hu Honua Bioenergy plant near Pepeekeo

Supporters of Hu Honua Bioenergy celebrated a new beginning Wednesday as construction continues to ramp up on the once troubled $250 million power plant near Pepeekeo.

“I’m overwhelmed to be here,” said Jenny Johnson, one of the biomass plant’s main investors, following a blessing and tour.

“It’s definitely had its ups and downs,” she added.

The power plant, contracted with Hawaii Electric Light Co. to produce up to 21.5 megawatts, was initially scheduled to be complete at the site of the former Hilo Coast Processing Co. mill in January 2016.

But the project faced setbacks, including a dispute with a contractor, and HELCO terminated its power purchase agreement in February 2016, citing missed deadlines. Following a settlement agreement, the state Public Utilities Commission approved an amended PPA in July, essentially bringing Hu Honua back from the dead.

Still, the project could face another hurdle. Environmental group Life of the Land said Monday it filed an appeal of the PUC’s decision to the state Supreme Court, arguing the agency should have considered impacts on climate change.

Harold Robinson, president of Island Energy, Hu Honua’s parent company, said he didn’t have a comment on the appeal, stating his focus is getting the power plant finished by December 2018, a deadline for receiving a crucial tax credit.

“We’re running on a tight schedule,” he said.

More than 40 people attended Wednesday’s event, including project staff and representatives from business groups, county officials and labor unions.

“The opportunities are again before us and we appreciate that,” said International Longshore and Warehouse Union business agent George Martin.

The ILWU, which represented workers at the mill before its closure in 1994 and plantations throughout the state, has a contract with Hu Honua.

The plant expects to employ 30 people once running and generate 130 forestry jobs.

Johnson, co-president of Franklin Resources, noted Hu Honua could have a new name — Honua Ola — following its completion. She said that means “living earth” in Hawaiian.

Hu Honua restarted construction in July. Robinson said it is still in the ramping up phase.

At its peak, he anticipates 250 construction workers will be employed.

During the tour, a few workers were at the site packing soil in a trench adjacent to what remains of the former sugar mill building and some of its additions.

The add-on structures, including scrubbers and a bag house, are there for controlling emissions and collecting ash, said project director Mitch Honeywell. He noted the plant will have four emission control systems, up from one at the mill’s former power plant that occupied the site.

“There’s no comparison to what was here before,” Honeywell said, regarding pollution control.

He said the project won’t have a visible plume because steam will be processed in a closed system. Emissions will include carbon dioxide and other gases regulated by the project’s air permit.

Honeywell said procurement and design work for the plant is 98 percent complete and estimated the plant itself is about 20 to 25 percent finished.

“It’s mainly a construction project at this point,” he said.

The power plant will be fed by eucalyptus trees harvested mainly in Hamakua, Robinson said. He said Hu Honua has agreements for harvesting trees on Parker Ranch land and Kamehameha Schools land in Pahala. Trees will be replanted.

KS is finalizing a lease with Hawaii Forest for 10,000 acres of timber land planted on former sugar lands on the Hamakua Coast.

Marius Ellis, president of Forest Solutions, which is part of Hawaii Forest, said the company has had some initial contacts with Hu Honua about using those eucalyptus trees.

Ellis said Hawaii Forest is looking at exporting trees as well as “higher-value processing,” such as creating veneer, on the island.

Email Tom Callis at tcallis@hawaiitribune-herald.com.