Hawaiian Electric Co. has launched a search for a new provider of sustainably produced, renewable biodiesel fuel for its new Campbell Industrial Park generating unit.

The $137 million generator has been completed, but can't produce electricity for HECO customers until the utility can find a new supplier for the renewable biodiesel it will burn.

HECO had expected Imperium Renewables to provide the needed biofuel, but that plan fell apart after Imperium encountered financing troubles. HECO and Imperium later failed to get Public Utilities Commission approval for a revised fuel purchase agreement.

The PUC said HECO's proposed biodiesel supply contract with Seattle-based Imperium carried too many risks and possible costs to be borne by the utility's customers. The commission also rejected a proposed storage terminal and trucking delivery contract with Aloha Petroleum Ltd.

HECO said it now is seeking new bids from biofuels producers.

"Being able to use liquid renewable fuels in our generating units is one of many steps — including more electricity from other renewable sources such as solar, wind, biomass and the ocean — to meet our goal of providing reliable electric service while reducing Hawai'i's dependence on fossil fuels," Hawaiian Electric Executive Vice President Robbie Alm said in a news release.

"We made a commitment to the PUC and Consumer Advocate to power the new peaking unit with renewable biodiesel."

The utility has issued two requests for proposals. One contract would be to supply 400,000 gallons of biodiesel to conduct operational testing and collect emissions data for permitting purposes. A second request for proposals is to supply 3 million to 7 million gallons of biodiesel per year for two years. In both, bidders must be able to demonstrate environmentally sustainable feedstock and biodiesel production.

Hawaiian Electric built the 110-megawatt combustion generator and related transmission lines to help handle peak loads and manage the O'ahu electrical demand reliably in the short term.

The plant has been designed as the utility's first generator to run on biofuel as part of its commitment to renewable energy.

Interested bidders can find necessary documents at http://biodieselsupply.heco.com.