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Dbedt News Release: Par Hawaii Receives First Federal Approval To Produce Renewable Fuels In A Foreign-Trade Zone

Government and Politics

May 1, 2023

From: Hawaii Governor Josh Green, M.D.

HONOLULU – In another first for Hawai‘i’s Foreign-Trade Zone (FTZ) program, Par Hawaii is the first refinery in the nation authorized to use renewable feedstock to produce renewable fuels under Foreign-Trade Zone procedures.

This authorization by the U.S. Department of Commerce, Foreign-Trade Zones Board expands Par Hawaii’s FTZ Production Authority to manufacture fuels such as renewable diesel, sustainable aviation fuel, and naphtha, using both foreign and domestically sourced crude soybean oil and refined soybean oil. Under federal Foreign-Trade Zone statute, all activity within an FTZ must first receive FTZ Board and U.S. Customs approval.

“This approval by the federal government is another step forward for Hawai‘i and solidifies our commitment in reaching our renewable energy goals. This clearly shows the state as a leader in the creation and utilization of alternative fuels production,” said Governor Josh Green M.D.

Chris J. Sadayasu, Director of the Department of Business, Economic Development and Tourism, which holds the corporate grant of authority to establish and manage Foreign-Trade Zones in the state said, “The Hawai‘i Foreign-Trade Zone program made history in 1972 by becoming the first refinery in the nation to operate under FTZ procedures. And now today, that same refinery makes history again by being the first in the U.S. to be granted the authority to develop renewable fuels from renewable resources.”

David Sikkink, Administrator of Foreign-Trade Zone No. 9 (FTZ9) added, “Foreign-Trade Zone No. 9 has a track record of firsts: first in the nation to be granted authority to produce petroleum fuels under Foreign-Trade Zone procedures, first garment manufacture producing in an FTZ for foreign markets, and the nation’s first steel can manufacturing and food canning operation in a Foreign-Trade Zone. FTZ9 has consistently shown itself to be an innovator and leader in leveraging Foreign-Trade Zones to expand and sustain the state’s economy.”