Hawaii Gas seeks proposals for the supply of biogas

By Erin Voegele | January 18, 2016

Hawaii Gas, the state’s regulated gas utility, has opened a request for proposals (RFP) to purchase raw biogas and/or renewable natural gas (RNG). The company is seeking proposals from local and national suppliers that can provide RNG in increments of up to 8,000 MMBtu per day.

“Adding renewable natural gas to our fuel mix is an important priority that will contribute to advancing Hawaii’s clean energy future,” said Alicia Moy, president and CEO, Hawaii Gas. “By diversifying our fuel supply, we will also further increase reliability for our customers.”

According to information released by Hawaii Gas, the company would be able to replace up to 18 percent of its current synthetic natural gas (SNG) production with renewable biogas if it were able to capture all of the biogas from Hawaii’s wastewater treatment plants and landfills.

Hawaii Gas plans to enter into one or more fuel supply agreements under the RFP, contingent on Hawai’i Public Utilities Commission approval. The term of the agreements will range from 5-20 years. Proposals should include the delivered cost of bio-methane to Campbell Industrial Park in Kapolei or the price at the point of raw biogas production.

“As the state moves forward with its commitment to renewable energy, we believe there is a role for natural gas energy,” said Joseph Boivin Jr., senior vice president of Business Development and Corporate Affairs, Hawaii Gas. “We can blend RNG with our synthetic natural gas (SNG) and liquefied natural gas (LNG) to provide customers with clean, reliable gas energy.”

In mid-2015, Hawaii became the first state in the U.S. to require 100 percent renewable energy. A bill signed by Hawaii Gov. David Ige on June 8 will require the state’s utilities to generate 100 percent of their electricity sales from renewable energy resources by 2045. http://biomassmagazine.com/articles/12038/hawaii-law-to-require-100-percent-renewables-by-2045

Interested parties can obtain the RFP by emailing biogasRFP@hawaiigas.com. Proposals are due March 7. Hawaii Gas is also interested in exploring the development of potential sources of locally produced RNG and encourages landowners and developers to contact the company at biogasDEV@hawaiigas.com