Decarbonizing Paradise

by Katie Schroeder (Biomass Magazine) More than 2,400 miles from the mainland U.S., energy company Par Pacific Holdings Inc. serves as Hawaii’s lone refinery. In 2023, the company decided to add sustainable aviation fuel (SAF) and renewable diesel to their product portfolio, creating a unit focused on developing renewable fuels projects. This unit developed the Hawaii Renewables Project at the Par Hawaii East refinery near Kapolei, Hawaii. Currently, the refinery’s capacity stand at 94,000 barrels per day (b/d) of conventional fuel. In 2023, the company committed to converting one of its units into a hydrotreated esters and fatty acids (HEFA) process. When operation begins, the renewables unit will produce 4,000 b/d, or 60 MMgy, of renewable diesel and SAF.

In 2019, the refinery invested in a distillate hydrogen treater, which removes sulfur from diesel and helps refiners hit the regulation specification of 15 parts per million. The unit ran for a couple years before the company observed the growth of the renewable fuels industry, and Par Pacific decided to explore converting the unit to a dedicated HEFA renewable fuels plant. In 2022, the company partnered with Hawaiian Airlines to explore SAF production. After a year of exploring the technical demands of the project with technology provider Topsoe, and as well as economic potential for SAF and renewable diesel production, Par Pacific committed to pressing forward on the project in 2023.

Combining Forces
Par Pacific recently announced the formation of Hawaii Renewables LLC, a joint venture company with Alohi Renewable Energy LLC (a partnership between Mitsubishi Corp. and ENEOS Corp., two of Japan’s largest energy and trading companies), where Par Pacific would contribute and operate the renewable fuel production assets in Hawaii.

The partnership will combine Par Pacific’s advantaged West Coast and Hawaii asset base and operational capabilities with improved market access via Mitsubishi’s terminal in Long Beach, California. Both ENEOS and Mitsubishi will enhance the business by leveraging their global integrated businesses and providing their technical, trading and feedstock origination capabilities across Asia-Pacific and North America.

The state’s electrical grid primarily relies on diesel or fuel oil for power generation, with around 65% of the state’s energy derived from these sources. However, the state’s carbon reduction mandate requires the utilities to provide 100% renewable energy by 2045, according to Wright. “Liquid fuels will always be a part of the mix here,” he explains. “The renewable fuel we’re making is going to help the utilities hit their mandated renewable energy goals. But the great thing about our project is that we can sell the diesel to the utilities, and the sustainable aviation fuel we can sell to the airlines. The diesel can also go to the marine market shipping. So, we really hit a lot of different sectors of the economy with our project.”

The state must meet certain benchmarks progressing toward the ultimate goal of 100% renewable energy: 40% by 2030 and 70% by 2040. Hawaii’s liquid fuel demand stands at about 100,000 b/d, meaning that Par Hawaii’s renewable fuel unit will not overwhelm the market. Goldsmith explains that the max SAF volume is around 2,400 b/d, around 5% of the approximately 50,000 b/d jet fuel market. “The project scale is right-sized for the Hawaii market,” he says.

Feedstock Flexibility
The unit is able to handle a wide range of feedstocks, including beef tallow, used cooking oil and more. To maximize economic benefits, Par Hawaii has installed an innovative, and first-of-its-kind pretreatment technology developed by Lutros LLC.

Par Pacific helped finance Lutros’ pilot plant in Chattanooga, Tennessee. After the technology was proved out, Par Pacific moved forward with the technology, installing it in their new system. Wright explains that since the facility will utilize diverse feedstocks, pretreatment helps ensure that the oils are free of any contaminants that could poison the catalyst. The company recognized the importance of onsite pretreatment, rather than purchasing treated feedstock.

Collocating the renewable fuels unit alongside a refinery benefits the process in a number of ways. The presence of preexisting hydrogen infrastructure is one such benefit, according to Wright. Par Hawaii East used to process a lot of Alaskan crude oil, which has a high sulfur content. Due to that, the refinery added hydrogen to reach required fuel specifications. Currently, the refinery uses a “sweeter” crude slate with less sulfur, meaning that the hydrogen plants were underutilized.

A Second Life
Par Hawaii is already seeking solutions for its feedstock access challenges, exploring Hawaii-based feedstocks with Pono Pacific, the state’s largest private conservation company. The group tests the viability of growing various crops on fallow agricultural land across the state. One such crop is camelina, a promising HEFA feedstock. READ MORE

Excerpt from Par Pacific: Par Pacific Holdings, Inc. (including its subsidiaries and affiliates, “Par Pacific”) today announced the successful closing of Hawaii Renewables, LLC (“Hawaii Renewables”), a joint venture to construct a renewable fuels facility (the “Renewable Fuels Facility”) and produce renewable fuels at Par Pacific’s refinery in Kapolei, Hawaii. Mitsubishi Corporation and ENEOS Corporation, through Alohi Renewable Energy LLC, acquired a 36.5% equity stake in Hawaii Renewables in exchange for cash consideration of $100 million. Par Pacific retained the remaining interest and will complete and operate the Renewable Fuels Facility through its affiliate, Par Hawaii Refining, LLC.

The Renewable Fuels Facility is expected to be completed by the end of the year and will be the state’s largest renewable fuels manufacturing facility, producing approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha and low carbon liquified petroleum gases.

About Par Pacific
Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, is a growing energy company providing both renewable and conventional fuels to the western United States. Par Pacific owns and operates 219,000 bpd of combined refining capacity across four locations in Hawaii, the Pacific Northwest and the Rockies, and an extensive energy infrastructure network, including 13 million barrels of storage, and marine, rail, rack, and pipeline assets. In addition, Par Pacific operates the Hele retail brand in Hawaii and the “nomnom” convenience store chain in the Pacific Northwest. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado. More information is available at www.parpacific.com. READ MORE