IMPLEMENTING LARGE-SCALE PRODUCTION ON MAUI
Cellana, Alexander & Baldwin, Inc. (NASDAQ: ALEX), Hawaiian Electric Company and Maui Electric Company, subsidiaries of Hawaiian Electric Industries, Inc. (NYSE: HE), in 2008 signed a memoranda of understanding to pursue the joint development of a commercial-scale microalgae facility on Maui to produce lipid oil for conversion to biodiesel and other valuable products, such as aquaculture and animal feeds.
Under the agreements:
- Cellana will be responsible for overall project management, including obtaining financing, and construction and operation of the microalgae facility.
- Alexander & Baldwin will provide strategically located land, adjacent to Maui Electric’s Ma’alaea Power Plant, to site the algae production ponds and processing plant, and may provide equity capital to the project.
- Hawaiian Electric and Maui Electric companies will lead in determining the permitting and construction needs for piping to carry stack gases containing carbon dioxide, which the algae consume, from the Ma’alaea plant to an adjacent algae facility.
Construction of the commercial microalgae facility is subject to a variety of factors, including confirmation of algae performance data from Cellana’s pilot and demonstration facilities, receipt of required regulatory approvals, formation of a special purpose entity, project financing commitments and the signing of definitive agreements with Hawaiian Electric, Maui Electric and A&B.
Photo credit upper left: Forest and Kim Starr (USGS);
Photo credit lower: Google maps