The project's first phase could provide up to 40 megawatts of wind-generated electricity for thousands of homes on Maui, according to a press release issued by Shell WindEnergy, a unit of Shell Oil Company.

Gov. Linda Lingle and officials from Shell were scheduled to announce the project at a news conference this afternoon at the state Capitol.

Shell said it plans to develop the Auwahi wind project on Maui's Ulupalakua Ranch. The turbines would stand in a remote corner of the 20,000-acre ranch. The site was chosen because of its "exceptionally strong winds and because it was felt that there would be minimal visual impact," Shell said.

The project may also combine wind and hydroelectric power. Pumped hydro storage technology could store power from the wind turbines during off-peak periods, which could then be used to help meet peak demand, Shell said. The concept of integrating this wind project with pumped hydro storage was advocated by Renewable Hawaii Inc., a subsidiary of Hawaiian Electric Co.

Shell noted that Hawaii residents pay among the highest utility rates in the nation, and the state is seeking to produce more power from renewable sources. When the Auwahi wind project is in operation -- the first phase is expected to be completed by 2008, subject to planning permission -- close to 20% of Maui's energy could come from wind turbines, Shell said. The total project is expected to cost more than $200 million and take from three to five years to complete.