The group wants to produce ethanol from pineapple waste, switchgrass, and other agricultural waste.

Hawaii import its fuel from Indnesia, China, Austrailia and the mainland, and its current mandate ethonal blends come from South America. Hawaii residents and visitors pays the most for gas nation wide, with some stations currently charging 3.62 or more for regular gasoline.

Also participating in the venture is Vinod Khosla, a co-founder of Sun Microsystems and alternative energy enthusiast, as well as Brazilian companies Brasil Bioenergia and Tarpon Investments.

More about Fuel Ethanol

Ethanol is also known as ethyl alcohol. It’s the alcohol in beer, wine, rum, vodka, etc.

Ethanol was used to fuel some of the first automobiles.

On the Mainland, “independent” gasoline stations were generally first to offer E10 (formerly known as gasohol). 1970s-1980s: Used as a “gasoline extender” 1980s: An “octane booster” (raises octane 2-3 points) 1990s: Used as an “oxygenate” for clean air (Adds oxygen & reduces emissions of carbon monoxide)

Today, ethanol-blended gasoline is available in most states.
All of Minnesota's gasoline contains ethanol (Minneapolis/Saint Paul, 1995; statewide, 1997)
California and states on the East Coast switched completely at the end of 2003 and are now using ethanol rather than MTBE.

In a report published in 2003, by Stillwater Associates Thomas Gieskes, David Hackett (Prepared for the State of Hawaii, Department of Business, Economic Development & Tourism, Strategic Industries Division )

The overall conclusion is that Hawaii has significant potential to economically produce ethanol from sugarcane. Large scale ethanol production could add as much as $300 million to the local economy in direct and indirect value.

However, in the near to midterm future, it will be more beneficial for consumers, producers, the existing petroleum industry and the State of Hawaii’s public finances if locally produced ethanol is not used in Hawaii but exported to California.

Ethanol could be produced in Hawaii at a large scale (up to 90 million gallons per year) at a competitive cost ($1.25 -$1.30 per gallon). Although ethanol could be produced from waste, it is likely to be more economical to use waste biomass for electricity production. With the federal excise tax credit, a blender of ethanol is projected to enjoy a cost advantage over base gasoline blendstock.

For each gallon of ethanol, local refiners will lose market share and be required to modify operations and construct facilities. Such cost increases are offset… the price per gallon at the rack will not increase. Hawaii consumers’ fuel expenditures would increase by 3%, due to 3% lower energy content of E10. (Note: assumes oil at $25 per barrel.)

However with fuel prices rising, and Hawaii's fuel cost indexed to the Middle East oil markets, it seems that several companies have decided the time is ripe for ethanol production in Hawaii .