Par Pacific Holdings said it signed agreements with Mitsubishi Corp (TYO:8058) and ENEOS Corp (TYO:5020) to form Hawaii Renewables, a joint venture to produce renewable fuels at Par Pacific's Kapolei refinery in Hawaii, according to a joint company statement released Monday.

Mitsubishi and ENEOS will jointly invest $100 million through Alohi Renewable Energy to acquire a 36.5% stake in the new company. Par Pacific will retain the remaining interest and oversee project execution and operations.

The facility, already under construction, is expected to begin operations by year-end. It will have annual output capacity of about 61 million gallons, including renewable diesel, sustainable aviation fuel (SAF), renewable naphtha and low-carbon LPG.

Designed to produce up to 60% SAF, the project targets Hawaii's aviation sector and offers flexibility to shift between fuel types based on demand. It will use pretreatment technology developed by Lutros LLC and draw on Par Pacific's logistics network.