- Associated Press - Wednesday, February 5, 2014

HILO, Hawaii (AP) - A Big Island project to generate electricity from eucalyptus trees and other plant matter is delinquent on millions of dollars in bills, its creditors say.

Hawaiian Dredging Construction Co. filed a lien against the Hu Honua Bioenergy in Hilo Circuit Court late last month claiming the company owes it more than $35 million.

Subcontractor American Electric filed another for more than $1.3 million, The Hawaii Tribune-Herald (https://bit.ly/1b2V7zf) reported.

“We at Hawaiian Dredging have not been paid a significant sum for work that has been done since early 2013,” said Gary Yokoyama, vice president and general counsel for Hawaiian Dredging.

Erik Eike, a Honolulu attorney representing American Electric, said Hu Honua’s bill has been unpaid for “almost a year at this point.”

A Hu Honua spokeswoman told the Tribune-Herald that the company doesn’t comment on matters in litigation.

Hu Honua planned to convert the former Pepeekeo Sugar Mill into a generation facility using renewable biofuel, including locally grown biomass such as eucalyptus.

The company signed an agreement two years ago to supply Big Island utility Hawaiian Electric Light with power. Hu Honua estimated at the time that it would supply 10 percent of the island’s electricity needs.

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Information from: Hawaii Tribune-Herald, https://www.hawaiitribune-herald.com/

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