Hawaiian Electric Co. said today it has signed a contract with an Iowa-based company to supply biodiesel that will be used to test HECO’s new power plant in Campbell Industrial Park.

Renewable Energy Group was contracted to supply 400,000 gallons of biodiesel that will allow HECCO to conduct operational testing at the plant and collect emissions data. HECO also is seeking bids on a second contract to supply from 3 million gallons to 7 million gallons a year for two years once the generating plant becomes fully operational. That contract is expected to be awarded at the end of November.
REG beat out seven other bidders for the initial contract. The contract has been submitted to the state Public Utilities Commission for review. HECO in August began seeking bidders for the initial biofuel contract after the PUC rejected a previous contract with another supplier.