Kaua`i Island Utility Cooperative (KIUC) has signed an agreement with Pacific West Energy, LLC (PacWest) for a 20-megawatt biomass-to-energy project to come online by April 2012.

The project to be operated by PacWest Energy, will provide renewable sourced energy for approximately 30 percent of Kaua`i's annual electrical use.

"Upon reaching full commercial operation, this project will allow KIUC to delay the Kapaia unit two combustion turbine project for the foreseeable future," said KIUC President and CEO Randy Hee.

The next step in the process is a power purchase agreement, which will be completed within 60 days and upon approval by KIUC's and PacWest's boards of directors will be submitted to the Hawai`i Public Utilities Commission for its approval.