Parr Pacific (PARR) Hawaii Facility to Start Up in 2028 – 30-Megawatt renewable fuel cogeneration development.

Par Pacific Holdings PARR is making significant strides in Hawaii’s renewable energy landscape with its 30-Megawatt renewable cogeneration development project. Recently named a finalist by power provider Hawaiian Electric HE, the initiative aligns with the state’s renewable energy goals. The project, situated at Par Pacific’s Kapolei refinery, capitalizes on existing infrastructure and supports Hawaii’s shift toward clean energy.

Scheduled to start commercial operations in 2028, the facility will leverage renewable-fired electricity generation. It synergizes with the renewable hydrotreater conversion initiative, providing a localized avenue for the renewable liquid fuels manufactured.

PARR believes that this endeavor will contribute significantly to Hawaii’s decarbonization objectives. Notably, the cogeneration project aligns seamlessly with the energy provider’s strategic approach of investing in both personnel and assets to address the dynamic requirements of the evolving energy landscape.

The project plans to use state-of-the-art, high-efficiency equipment for flexible renewable power production. At full capacity, it can generate power for 30,000 homes. Final investment and offtake agreement terms with Hawaiian Electric are set for negotiation in 2024, subject to regulatory approvals, including those from the Hawaii Public Utility Commission.

Par Pacific, an oil and gas refiner diversifying into renewables in a big way, is further contributing to Hawaii’s sustainable energy future with a $90 million investment in the state’s largest liquid renewable fuels manufacturing facility.

Expected to be commissioned in 2025, the project will produce 61 million gallons annually of sustainable aviation fuel, renewable diesel, renewable naphtha, and renewable liquefied petroleum gases. These renewable fuels serve as low-carbon alternatives to conventional fossil fuels, supporting Hawaii’s commitment to environmentally friendly energy sources.

Zacks Rank & Stock Picks

Par Pacific carries a Zacks Rank #3 (Hold) at present.          

Meanwhile, investors interested in the energy sector might look at operators like Murphy USA MUSA and Liberty Energy LBRT, each currently carrying a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two. It has a trailing four-quarter earnings surprise of 7%, on average.

Murphy USA is valued at around $7.6 billion. The company has seen its shares gain 28% in a year.

Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.

Liberty Energy is valued at around $3 billion. LBRT has seen its shares rise 12.9% in a year.

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Parr Pacific’s (PARR) Hawaii Facility to Start Up in 2028, Decmeber 13, 2023