Planned to be located on Schofield Barracks Army base, around 40km from Honolulu, the plant will feature six Wärtsilä 34DF engines with combined output of 50MW.
The plant will help allow the integration of more solar photovoltaic (PV) generation on the island.
The power plant, which is subject to approval from the Hawaii Public Utilities Commission, is expected to start operations in 2017.
Wärtsilä said the power station will run on a biofuel blend, which will include liquid fuels and natural gas when liquefied natural gas (LNG) becomes available on the island.
The project is part of the plan to reduce the island’s dependence on oil and coal-based generation.
Hawaiian Electric senior engineer Jack Shriver said: "We need to transform our generation portfolio to be more flexible and quick-starting in order to integrate more renewable energy, especially solar power. This project is an important step in that direction."
Hawaii intends to increase the share of renewable electricity from 15% in 2015 to 25% in 2020, and 40% in 2030.
However, Hawaiian Electric is already more than 18%, crossing the 2015 goal. The company has recently submitted a plan that would exceed 65% by 2030.
In Hawaii, Wärtsilä has earlier supplied two power plants to the islands of Kauai and Maui with a combined capacity of 38MW.
Image: There are more than 40,000 rooftop solar installations in Hawaii, most of them on the main island of Oahu. Photo: Courtesy of Wärtsilä.
