Par Pacific, Mitsubishi & ENEOS to setup JV for SAF production in Hawaii
Houston-based energy company Par Pacific Holdings, Mitsubishi Corporation and ENEOS Corporation announced the signing of agreements to establish a joint venture Hawaii Renewables to produce renewable fuels in Kapolei Hawaii.
“We anticipate this project will deliver a stable supply of energy and contribute to a carbon-neutral society,” said Marcus Echigoya, senior vice president, managing executive officer, ENEOS Corporation.
Mitsubishi and ENEOS will form Alohi Renewable Energy, which will acquire a 36.5% equity stake in Hawaii Renewables in exchange for cash consideration of $100m.
“We are so honored to partner with Par Pacific in the renewable fuels business,” said Masaru Saito, Group CEO, Environmental Energy Group, Mitsubishi Corporation. “We view this partnership as an important step for our SAF initiative, supporting aviation sector decarbonization across Hawaii and beyond through our feedstock procurement and renewable fuels sales expertise.”
Par Pacific will retain the remaining interest and lead the project’s execution and operations through its affiliate, Par Hawaii Refining.
Hawaii Renewables will leverage Par Pacific’s existing refining and logistics infrastructure and Lutros’ new and advantaged pretreatment technology.
“We are thrilled to partner with Mitsubishi and ENEOS through the formation of this strategic joint venture,” said Will Monteleone, Par Pacific’s president & chief executive officer. “Creating the Hawaii Renewables joint venture brings together the best of our three organisations and yields additional scale and expertise across feedstock origination, commercial optimization, and market access throughout the Pacific Basin.”
Construction is currently underway, and the facility is expected to be completed and operational by the end of the year. Once fully operational, Hawaii Renewables will be the state’s largest renewable fuels manufacturing facility and is expected to produce approximately 61m gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha and low carbon liquified petroleum gases.
The facility is designed to produce up to 60% SAF as a first step toward decarbonising Hawaii’s significant air travel market, with flexibility to process diverse feedstocks.
The closing of the joint venture transaction is subject to customary closing conditions and regulatory approvals. Lazard served as financial advisor to Par Pacific on this transaction.
The investment will help Par Pacific scale the plant in Kapolei. The project was scheduled to begin production from the second half of 2025.