In the United States (US), Hawaiian Airlines Inc, the state’s largest and longest-serving air carrier, and Par Hawaii, LLC (Par Hawaii) an affiliate of Houston, Texas (TX) headed Par Pacific Holdings, Inc. Hawai’i’s largest supplier of energy products, have announced plans to join forces to study the commercial viability of locally produced sustainable aviation fuels (SAF) — to replace all or a percentage of traditional kerosene-based jet fuel with fuel that is made with sustainable feedstocks.
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This is a major step for both organizations to reduce carbon emissions, address climate change, and create a more sustainable energy future for Hawai’i.
This is the first step in what we hope will be a long and productive relationship that reflects both parties’ unwavering commitment to the environment and to these islands we call home. SAF is an integral part of decarbonizing aviation, and we hope to be able to make joint investments in SAF production here in Hawaii, which will benefit both the environment and our economy, said Peter Ingram, President, and CEO of Hawaiian Airlines.
Based on a Memorandum of Understanding (MoU) signed by both companies, Hawaiian Airlines and Par Hawaii will jointly evaluate the potential to convert two of the processing units at Par’s Kapolei refinery to:
- produce renewable fuels, including sustainable aviation fuel (SAF);
- explore the production of locally grown, oil-yielding crops;
- study the feasibility of importing sustainable feedstocks to produce sustainable aviation fuel and other renewable products;
- and convene stakeholders to continue to support and identify federal and state policies and programs that accelerate Hawai’i-based production of renewable fuels.
Par Pacific’s strategy is to acquire and develop businesses in logistically complex, niche markets.
Par Pacific owns and operates one of the largest energy networks in Hawaii with 94 000 barrels per day (bpd) of operating refining capacity, a logistics system supplying the major islands of the state, and 90 retail locations.
We have over 260 employees at our Kapolei refinery engaged in high-quality manufacturing work. We’re excited to be partnering with Hawaiian Airlines to innovate and position our business for the future. Aviation fuel represents approximately 40 percent of Hawaii’s fuel demand, and our work with Hawaiian is an important step in addressing these emissions, said William Pate, President, and CEO of Par Pacific.
In 2019, Par Pacific invested US$27 million in a distillate hydrotreater at its Kapolei refinery to produce more jet fuel and ultra-low sulfur diesel.
This relatively new processing unit, along with the refinery’s distillate hydrocracker – which produces high-value transportation fuels by converting heavier, lower value products under high temperature and pressure – are the two primary units being considered for renewable fuels production.
We believe we’re headed in the right direction by collaborating with Hawaiian Airlines to explore the shift from petroleum to biofuels at our Par Hawaii refinery, ended Eric Wright, President of Par Hawaii.
