By Pacific Business News (Honolulu)

Hawaiian Electric Co. has selected Renewable Energy Group for a new contract to supply biodiesel to its 110-megawatt Campbell Industrial Park Generating Station.

The Ames, Iowa-based biodiesel manufacturer currently supplies biodiesel to the HECO plant under a contract that expires in July 2012.

Under the new three-year contract, REG will supply 3 million to 7 million gallons of biodiesel made from used cooking oil and animal fats.

The awarding of the new contract, which was the result of a request for proposals issued in February, is subject to approval by the Hawaii Public Utilities Commission.

The PUC in September rejected Hawaiian Electricâ¿¿s contract to purchase Hawaiian-grown biofuel from Aina Koa Pono, saying the contract was too expensive for HECO ratepayers.

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