PAR HAWAII RECEIVES FIRST FEDERAL APPROVAL TO PRODUCE RENEWABLE FUELS IN A FOREIGN-TRADE ZONE

News Release from DBEDT,  May 1, 2023

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.”

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About Foreign-Trade Zone No. 9 (FTZ9):

FTZ9 is a federal program managed by a state agency with the mission of diversifying and growing the state’s economy through the development of jobs and capital investment in Foreign-Trade Zones, geographical areas near ports of entry where goods can be imported tax- and duty-free while in storage or used in manufacturing. FTZ9, located at Pier 2 between downtown Honolulu and Kaka‘ako, holds the corporate grant of authority from the federal government to reduce the barriers to international trade through the ability to defer, reduce, or even eliminate customs duties on imported goods. FTZ9 is Hawai‘i’s one-stop shop for international trade, housing the majority of the state’s Customs House Brokerages as well as shipping logistics firms, the office of the U.S. Commercial Service, and other international trade support organizations. U.S. Foreign-Trade Zones allow companies to take advantage of federal import and export benefits to compete on a level playing field with foreign manufacturers.