Hilo biofuel pipeline poised for approval

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A plan to use an abandoned pipe to transport biofuel from ships docked at Hilo Harbor to a nearby storage facility will likely be approved after it cleared an environmental assessment.

A plan to use an abandoned pipe to transport biofuel from ships docked at Hilo Harbor to a nearby storage facility will likely be approved after it cleared an environmental assessment.

The EA finished last month gave the project a finding of no significant impact, which it needed to receive approval from the state Board of Land and Natural Resources.

The pipe, formally used by Shell Oil, travels under state land. An easement from BLNR is required.

Hoku Kai Biofuels LLC owns the former Shell Oil property at 794 Kalanianaole Ave. and plans to use its nine existing tanks to store up to 1.2 million gallons of biofuel. The pipe would transport the biofuel from ships to the facility.

A company representative told Stephens Media Hawaii in March the biofuel would be sourced “worldwide.”

Customers could be power producers on the Big Island as well as vehicle fleets and ships, the spokesman said.