Par Hawaii Converting Refining Units to Renewable Diesel, SAF

Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Par Hawaii Refining (Kapolei, Hawaii), in partnership with Hawaiian Airlines, is converting one of its refining units, a distillate hydrotreater, at its 155,000-barrel-per-day (BBL/d) Par East Refinery in Kapolei to produce renewable diesel and sustainable aviation fuel (SAF). It is investing $90 million in the conversion. The refinery, first opened in 1970, is owned by Par Pacific Hawaii Incorporated, which owns refineries, retail locations and a logistics system on all the state's major islands.

The hydrotreater unit being converted was a recent addition to the refinery. Par Pacific commissioned the unit in 2019 as part of a $27 million project to produce ultra-low sulfur diesel (ULSD) and jet fuel for the local market while reducing high sulfur fuel oil output to meet International Maritime Organization (IMO) bunker fuel requirements. The conversion involves modifying the existing reactor, installing new compressors, pumps and heat exchangers.

The converted renewable diesel unit will produce up to 61 million gallons per year of renewable diesel.

Industrial Info's research shows that the conversion is under construction and is expected to be completed in late 2025. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for the project report.

Additionally, Par Pacific is evaluating economic options around a $50 million project to convert its 13,000-BBL/d hydrocracker to produce renewable diesel and SAF. That decision, according to Industrial Info sources, appears to be years out. Subscribers can click here for the project report.

Sustainable Feedstock
Par Hawaii has announced it will partner with Pono Pacific Land Management to supply sustainably-grown camelina as feedstock for the renewable diesel and SAF. Camelina is often favored for its high oil content (30-40%) and the properties of its oil. A short season crop (85-100 days to maturity), it can often be used as a cover crop and rotated with food crops to enhance soil health.

Why Convert
On the U.S. mainland, industry observers are reporting a glut of renewable diesel amid the retrofitting of at least two facilities back to petroleum feedstocks. China is also retrofitting or closing renewable refineries.

But supplies in mainland U.S. and in China are far from the islands, and shipping expenses would greatly raise the cost for Hawaii, so there does not appear to be a supply glut there. But locally-sourced camelina feedstock would offer a cost-effective biofuels option.

This is not the first partnership Hawaiian Airlines has announced for SAF supply, but it is the first on its home turf and may be the first to actually begin supplying fuel. In 2023, the airline reached agreement with biofuel company Gevo (NASDAQ:GEVO) (Englewood, Colorado) to purchase 50 million gallons of SAF over five years. That fuel would be produced in the Midwest and delivered to airports that Hawaiian Airlines connects with in California. The proposed start date is in 2029.

Subscribers can click here for the project reports mentioned in this article and click here for the related plant profile.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).