Refinery Gets First Fed Nod to Make Renewable Fuel in FTZ

May 2, 2023 by Dan McCue
Refinery Gets First Fed Nod to Make Renewable Fuel in FTZ
(Par Hawaii photo)

HONOLULU, Hawaii — Par Hawaii, a refiner of renewable fuels, is now the first entity of its kind in the nation to win federal approval to produce its goods in a Foreign-Trade Zone.

Now that the U.S. Commerce Department has given its blessing, the Foreign-Trade Zones Board expanded Par Hawaii’s FTZ production authority to manufacture fuels such as renewable diesel, sustainable aviation fuel and naphtha, another liquid hydrocarbon, made from domestically sourced crude soybean oil and refined soybean oil.

The company is currently working with Hawaii-based Pono Pacific in the planting of camelina crops to test the suitability of that oil seed for state production.

“This approval, handed down on Monday by the federal government, is another step forward for Hawaii and solidifies our commitment in reaching our renewable energy goals,” said Gov. Josh Green, M.D.

“This clearly shows the state as a leader in the creation and utilization of alternative fuels production,” Green said.

David Sikkink, administrator of Foreign-Trade Zone No. 9, where the facility is located, said, “it has consistently shown itself to be an innovator and leader in leveraging Foreign-Trade Zones to expand and sustain the state’s economy.”

Under federal Foreign-Trade Zone statute, all activity within an FTZ must first receive FTZ Board and U.S. Customs approval.

A Foreign-Trade Zone is a designated location in the United States where companies can use special customs procedures that help encourage U.S. activity and value added — in competition with foreign alternatives — by allowing delayed or reduced duty payments on foreign merchandise, as well as other savings.

The announcement of the FTZ authorization coincides with Par Hawaii’s announcement that it plans to invest roughly $90 million to develop the state’s largest liquid renewable fuels manufacturing facility at its Kapolei refinery, near Honolulu.

The project is expected to produce approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha and liquified petroleum gases. If market conditions are supportive, yield can be shifted to over 90% renewable diesel.

In 2022, Par Pacific and Hawaiian Airlines, the largest air carrier in the state, announced a joint feasibility study to explore ways to make sustainable aviation fuel commercially viable.

Company officials said the latest announcements mark a significant milestone in the efforts of the refinery and the airline to produce renewable fuels in Hawaii.

Par Pacific also is assessing development opportunities at the former Chevron refinery location in Kapolei, near its current operations, including projects that would further support the state’s efforts to decarbonize its electrical grid.

Dan can be reached at [email protected] and @DanMcCue

A+
a-

Corrections

Two typos were corrected in this piece after its original publication.

  • Foreign-trade zone
  • naphtha
  • Par Hawaii
  • renewable diesel
  • renewable fuel
  • sustainable aviation fuel
  • In The News

    Health

    Voting

    In The States

    May 10, 2024
    by Dan McCue
    Buffalo NY Man Fights for Right to Know About Toxic Waste Before Buying Home

    NORTH TONAWANDA, N.Y. — Todd Carson thought he was living the American dream. The year was 2006 and with two... Read More

    NORTH TONAWANDA, N.Y. — Todd Carson thought he was living the American dream. The year was 2006 and with two small kids in elementary school, he and his wife decided to rent out their small apartment in Buffalo, New York, and move the family into an... Read More

    Virginia Judge to Decide Whether State Law Considers Embryos as Property

    FAIRFAX, Va. (AP) — A trial is underway in Virginia that will determine whether state law allows frozen embryos to... Read More

    FAIRFAX, Va. (AP) — A trial is underway in Virginia that will determine whether state law allows frozen embryos to be considered property that can be divided up and assigned a monetary value. Fairfax County Circuit Court Judge Dontae Bugg heard arguments Thursday from a divorced... Read More

    One Man Was a Capitol Police Officer. The Other Rioted on Jan. 6. They're Both Running for Congress

    CHARLESTON, W.Va. (AP) — For Derrick Evans, being part of the mob that stormed the U.S. Capitol wasn’t enough. The former West... Read More

    CHARLESTON, W.Va. (AP) — For Derrick Evans, being part of the mob that stormed the U.S. Capitol wasn’t enough. The former West Virginia lawmaker wants to make his path to the halls of Congress permanent. On the other side of the metal barricades that day, Police Officer Harry... Read More

    How a Texas Man is Testing Out-of-State Abortions by Asking a Court to Subpoena His Ex-Partner

    AUSTIN, Texas (AP) — A Texas man is petitioning a court to authorize an obscure legal action to find out... Read More

    AUSTIN, Texas (AP) — A Texas man is petitioning a court to authorize an obscure legal action to find out who allegedly helped his former partner obtain an out-of-state abortion, setting up the latest test of the reach of statewide abortion bans. As some states work to... Read More

    May 8, 2024
    by Tom Ramstack
    DC Police Clear War Protesters After Congressional Threat to Intervene

    WASHINGTON — Washington, D.C., police cleared out Israel-Hamas War protesters from George Washington University in the early hours of Wednesday... Read More

    WASHINGTON — Washington, D.C., police cleared out Israel-Hamas War protesters from George Washington University in the early hours of Wednesday but only after enduring congressional criticism for the delay. Thirty-three protesters were arrested at an encampment only blocks from the White House after police said they... Read More

    The Unexpected, Under-the-Radar Senate Race in Michigan That Could Determine Control of the Chamber

    LANSING, Mich. (AP) — Elissa Slotkin had less than half an hour to reckon with a retirement announcement that would... Read More

    LANSING, Mich. (AP) — Elissa Slotkin had less than half an hour to reckon with a retirement announcement that would reshape Michigan’s political landscape. The state's senior senator and the third-ranking Democrat in the chamber, Debbie Stabenow, was about to reveal that she would retire in 2024.... Read More

    News From The Well
    scroll top