A major retail gas provider of Hawaii, The Gas Company LLC (TGC), said Monday it has signed a memorandum of understanding (MOU) with California-based Primoris Renewables to jointly develop the production of up to half the utility’s synthetic gas supplies from renewable resources in the next five years. Both companies said they intend for the MOU to lead to a joint development agreement.

The companies are seeking to develop technology that would reduce the gas utility’s carbon footprint by incorporating “domestically produced alternatives” to the foreign petroleum products now used in TGC’s syngas plant, which supplies gas to residential and commercial customers on each of the six major islands in Hawaii — Oahu, Maui, Hawaii, Kauai, Molokai and Lanai.

With the renewable unit of Lake Forest, CA-based Primoris Services Corp., TGC intends to adapt its synthetic natural gas (SNG) technology to use agricultural feedstock in place of petroleum, and TGC CEO Jeffrey Kissel said he thinks the company can provide a low-cost, clean gas fuel. “With more than 60 years of experience in the energy sector, Primoris is the ideal partner for us to adapt our hydrogen-based technology to reduce Hawaii’s dependence on foreign oil.”

The MOU focuses on the eventual development of production facilities at TGC’s SNG plant to process agricultural waste and landfill gas into biomethane, renewable diesel or similar products, the companies said. It also calls for energy and economic efficiency improvements in plant operations.

A subsidiary of Macquarie Infrastructure Co., TGC owns and operates the only SNG plant in the United States. The plant uses a catalytic process to convert petroleum refinery byproducts into methane that is the equivalent of natural gas and hydrogen that is distributed to customers in metropolitan Honolulu.

TGC’s process uses recycled wastewater to produce hydrogen for about 5% of the utility gas supply, and the SNG plant also captures carbon dioxide produced in the process, and recycles it to nearby industrial users for dry ice, carbonation and other uses.

Primoris CEO Brian Pratt indicated that his company intends to capture the growing market among energy providers to go green, providing more renewable-based power. “We intend to be on the leading edge of that movement,” said Pratt, noting that the new relationship with TGC is “a significant first step in attaining critical mass in developing and perfecting the process.”

TGC supplies synthetic natural gas through a 1,100-mile pipeline network to more than 28,000 commercial and residential utility customers. It also supplies liquefied petroleum gas (LPG or propane) imported or refined in Hawaii to more than 40,000 commercial and residential utility and nonutility customers statewide.

“Where possible, we create mini-utility pipeline networks powered by propane for clusters of customers, while others are served by regular delivery of propane to onsite tanks,” a TGC spokesperson said.

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