Par Pacific Closes $100M Deal To Build Largest Renewable Fuels Facility In Hawai’i

It’s unclear how the renewable fuels facility will impact Par Pacific’s convenience retailing network in the state, which includes about 89 locations under the company’s Hele banner. Retrieved from Par Pacific.

Dive Brief

• Houston-based oil and convenience retailer Par Pacific Holdings has closed a $100 million deal to build the largest renewable fuels manufacturing facility in Hawai’i, the company announced last week.

• The facility in Kapolei is expected to be built by the end of 2025 and will produce roughly 61 million gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha, and low carbon liquified petroleum gases.

• The deal marks new territory for Par Pacific, whose profitable retail arm has become one of the quieter success stories in the c-store industry.

• How in-store tech is transforming c-stores

Dive Insight

Par Pacific’s latest initiative was revealed in July when the company, alongside Japanese trading and petroleum firms Mitsubishi Corporation and ENEOS Holdings, agreed to establish a joint venture to produce renewable fuels at Par Pacific’s refinery in Kapolei. As part of the deal, Mitsubishi and ENEOS would form Alohi Renewable Energy, LLC, which would acquire a 36.5% equity stake in the venture for $100 million, while Par Pacific would retain the remaining interest and lead the project’s operations.

It’s unclear how the facility will impact Par Pacific’s convenience retailing network in Hawai’i, which includes about 89 locations under the company’s Hele banner. Back in July, Par Pacific said the facility "will contribute to reducing greenhouse gas emissions while providing reliable transportation and utility fuels to Hawaii consumers."

“We are thrilled to partner with Mitsubishi and ENEOS through the formation of this strategic joint venture,” Will Monteleone, president and CEO of Par Pacific, said in July. “Creating the Hawaii Renewables joint venture brings together the best of our three organizations and yields additional scale and expertise across feedstock origination, commercial optimization, and market access throughout the Pacific Basin.”

Besides its locations in Hawai’i, Par Pacific operates another roughly 30 c-stores across Idaho and Washington under the Nomnom and 76 banners. The company’s retail operating income surged by nearly $10 million in fiscal 2024, and in the second quarter saw year-over-year gains beyond 20%.

Monteleone, who said this summer that Par Pacific’s retail business "continues to shine," noted that strong fuel margins and lower operating costs have been a major catalyst for the retail division’s success.

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About Par Pacific Holdings

Par Pacific Holdings, Inc. is a growth-oriented company that manages and maintains interests in energy and infrastructure businesses. The company’s operations include refining, retail, and logistics, focusing on strategic assets in Hawaii, Wyoming, and Washington. For more information, visit https://www.parpacific.com.