Construction resumes at Big Island bioenergy plant

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HILO, Hawaii (AP) - Construction work has resumed at a Big Island power plant expected to generate electricity from eucalyptus trees and other plant matter.

Work at Hu Honua Bioenergy at Pepeekeo was delayed for several months because of a dispute with the plant's general contractor. Hawaiian Dredging Construction Co. claimed Hu Honua had failed to pay it $35 million for its services.

The Hawaii Tribune-Herald reports Hu Honua officials say they've settled the dispute, though they wouldn't discuss terms. A new contractor has taken over construction.

CEO John Sylvia anticipates all equipment and materials will be delivered by early April. He says it will take about a year to get the plant up and running.

Once operational, the 21.5 megawatt plant will provide energy to Hawaii Electric Light Co.

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