Par Pacific, Mitsubishi, and ENEOS have finalized agreements to establish Hawaii Renewables, LLC, a joint venture set to become Hawaii's largest renewable fuels manufacturing facility.
In a landmark development poised to revolutionize Hawaii's energy landscape, Par Pacific Holdings, Inc., Mitsubishi Corporation, and ENEOS Corporation today announced the signing of definitive agreements to form Hawaii Renewables, LLC. This strategic joint venture will establish the state's largest renewable fuels manufacturing facility at Par Pacific’s existing refinery in Kapolei, Hawaii.
Construction on the facility is already underway, with an ambitious target for completion and full operation by the end of 2025. Once commissioned, Hawaii Renewables is projected to produce approximately 61 million gallons per year of Renewable Diesel (RD), sustainable aviation fuel (SAF), renewable Naphtha, and low-carbon liquified petroleum gases. The facility's design is notably flexible, with the capability to produce up to 60% SAF, directly addressing the critical need for decarbonization within Hawaii's substantial air travel market.
Under the terms of the agreement, Mitsubishi and ENEOS will create Alohi Renewable Energy, LLC, which will acquire a 36.5% equity stake in Hawaii Renewables in exchange for a cash consideration of $100 million. Par Pacific will retain the remaining interest and will spearhead the project's execution and operations through its affiliate, Par Hawaii Refining, LLC. The collaboration leverages Par Pacific's established refining and logistics infrastructure, combined with innovative pretreatment technology from Lutros, LLC, to ensure both cost-effectiveness and operational efficiency.
This partnership is strategically designed to capitalize on the strengths of each participating entity. Par Pacific brings its advantageous West Coast and Pacific asset base and considerable operational capabilities. Mitsubishi contributes its global integrated business, offering crucial access to its Petro-Diamond Inc. Terminal in Long Beach, California, and extensive global feedstock Procurement expertise. ENEOS, as Japan's leading energy company, further strengthens the venture with its deep-rooted success in fuel refining and trading across the Asia-Pacific and North American regions.
The successful closing of this joint venture transaction remains subject to customary closing conditions and regulatory approvals. Lazard served as the financial advisor to Par Pacific for this significant transaction. The establishment of Hawaii Renewables, LLC represents a pivotal step in Hawaii's journey towards energy independence and a greener, more sustainable future, promising to reduce greenhouse gas emissions while ensuring reliable fuel supply for consumers across the islands.
