Par Pacific Holdings, Inc., the parent company of oil refinery Par Hawaii, announced Thursday plans to invest $90 million to develop Hawaii's largest liquid renewable fuels manufacturing facility at its Kapolei refinery. The project — slated to be commissioned in 2025 — is expected to produce approximately 61 million gallons each year of renewable diesel, sustainable aviation fuel, renewable naphtha and liquified petroleum gases, according to the announcement.
“This project represents a key milestone in our renewable fuels strategy, which supplements our conventional fuels production in Hawaii," Par Pacific CEO William Pate said in a statement. "The expansion ensures that Par Hawaii, with its high-paying local manufacturing jobs, will be the leading supplier of liquid fuels to the Hawaii economy now and into the future."
The project will utilize the Kapolei refinery's existing tank storage and related logistics, its operating team, as well as its available hydrogen for current refining operations. It is expected to be completed for less than $1.50 per gallon of annual operating capacity, according to Par Pacific.
In 2022, Par Pacific and Hawaiian Airlines announced a joint study to explore ways to make sustainable aviation fuel commercially viable, as previously reported by PBN. The companies "look forward to engaging with stakeholders across the community to advance policies which enable the use of renewable fuels in Hawaii," as stated in the announcement.
"The creative redevelopment of a portion of our refining system is an excellent example of our team’s technical strength to deliver renewable fuel solutions that supplement our existing operations," Eric Wright, president of Par Hawaii, said in a statement. "I am very proud of the team’s contributions and look forward to continuing our efforts to diversify and decarbonize energy sources for our community."
Par Pacific Holdings, Inc. is headquartered in Houston, Texas, and owns and operates energy, infrastructure and retail businesses across the U.S, according to the announcement.
