An $80 million investment in a Kaua‘i sugarcane operation promises to preserve 230 jobs, protect the island’s agricultural heritage and promote Hawai‘i’s renewable energy goals. Gay & Robinson and Pacific West Energy announced yesterday that they have partnered to develop
An $80 million investment in a Kaua‘i sugarcane operation promises to preserve 230 jobs, protect the island’s agricultural heritage and promote Hawai‘i’s renewable energy goals.
Gay & Robinson and Pacific West Energy announced yesterday that they have partnered to develop the nation’s first fuel ethanol plant to generate renewable power from sugarcane.
The move will transform the 118-year-old company from a commodity raw sugar producer to an alternative energy provider, Gay & Robinson President Alan Kennett said.
The Kaumakani-based ethanol plant — designed to produce up to 12 million gallons of the grain-based fuel annually — will use sugar juice or molasses as feedstock. The supply will come from a 7,500-acre sugar plantation the Robinson family runs on the Westside.
The operation would produce almost one-third of the state’s 40-million-gallon demand for ethanol, Pacific West Energy President William Maloney said.
Since the Legislature passed a law more than a year ago requiring 85 percent of gasoline contain 10 percent ethanol, Hawai‘i oil companies have been forced to import more than 55 million gallons of ethanol, the Associated Press reported yesterday.
So although the state’s import of crude oil has declined 2 percent to nearly 2 billion gallons, Maloney said producing ethanol locally would provide the “real bang for the buck.”
The partners have secured a state air permit and initiated design and engineering work.
The goal is to break ground by December and be operational by the end of 2008, Maloney said, but it depends on how long it takes to obtain county building permits.
Green matter and bagasse, a fibrous sugar cane residue, will fire the boiler to produce the steam that operates the plant.
Vinasse, a residual byproduct of sugarcane alcohol distillation, can be used as fertilizer until there is proven technology to use it as a renewable fuel, Maloney said.
“The partners’ long-term vision is for an ‘energy plantation’ on Kaua‘i that also produces biodiesel, hydro and solar power,” Gay & Robinson Ag-Energy spokesman John Mangan said.
The initial $80 million phase of capital investment will include installation of a new biomass boiler and turbine generator to efficiently produce renewable electricity, a news release states.
Maloney said the power plant, hopefully operational within three years, is expected to produce 25 megawatts.
Future business plans also call for a methane recovery system, the processing of municipal solid waste and the conversion of biomass into liquid fuels.
“We are grateful to the Robinson family for partnering with us as we seek creative solutions to Hawai‘i’s energy needs,” Maloney said in a press release. “Gay & Robinson enjoys some of the highest sugarcane yields in the world, with abundant sunshine and water resources. These factors, coupled with a highly productive work force, new capital and an experienced and innovative management team will make Gay & Robinson and Kaua‘i a shining example to the world of sustainable economic development.”
Existing infrastructure and an adequate water supply helped cement the partnership with Gay & Robinson.
Water availability on other Hawaiian islands presents a “big challenge,” Maloney said.
The Robinson family was “extremely judicious” in selecting a partner to move the company forward, Gay & Robinson Chairman Warren Robinson said in a news release.
“Protecting the livelihood and lifestyle of our workers and pensioners and keeping the Westside of Kaua‘i in agriculture are of paramount importance to us,” he said. “We know that Pacific West shares our vision in this regard.”
Concurrent with the partnership transaction, Pacific West completed an equity funding round led by Officers Row Capital, a venture capital firm based in Vancouver, Wash., specializing in energy and telecommunication. Richard Keller, President of Officers Row, will become Chairman of Pacific West, with Mr. Maloney serving as President.
“(Gay & Robinson’s) history of support for their employees and the community provide a strong foundation to create a profitable and sustainable clean energy business on Kaua‘i,” Officers Row President Richard Keller said.
• Nathan Eagle, staff writer, can be reached at 245-3681 (ext. 224) or neagle@kauaipubco.com.
