Commission approves two‑year payment plan for DIBS Hawaii’s Kauai biochar facility, commission asks for community engagement on water and dust

The Hawaiian Homes Commission on May 19 approved a payment‑plan request from DIBS Hawaii for General Lease No. 275, the site proposal to operate a biochar/carbon‑capture facility on DHHL lands on Kauaʻi. The commission approved a multi‑year deferment payment schedule to give the operator runway to recommission the facility and pursue carbon‑credit sales and other revenue streams.

DIBS Hawaii and its partners told commissioners the project would deploy biochar production from local feedstocks — including macadamia shells and gorse — for soil improvement, fire mitigation and sale of carbon credits. Company representatives said the site contains roughly 15,000 tons of macadamia shell feedstock on site (a two‑year inventory at their projected throughput) and described plans to process feedstocks into durable biochar for local agricultural deployment.

Company leaders and partners emphasized workforce development and community benefits, including pathways to hire island residents and the potential to return biochar to local farms at no cost using carbon‑credit revenue. DIBS representatives also described coordination with native Hawaiian partners and proposed a new operating entity, Ag Energy Hawaii, to hold the biochar operating business with native Hawaiian ownership.

Commissioners asked about feedstock logistics, emissions and community impacts. Community testifiers raised concerns about water access for neighboring communities, truck traffic and dust from nearby industrial activity, and sought a meeting with DIBS staff to clarify community benefits and mitigation plans. DIBS representatives said they had acquired the plant assets and expected to scale operations; they described pursuing a suite of funding sources including special‑purpose revenue bonds authorized by Act 198 (S.B. 2865) — a $40 million bond authorization mentioned in testimony — and pre‑sales of carbon credits to provide startup runway.

The commission motion to approve the payment plan was offered by Commissioner Chris Freitas and seconded; commissioners approved the plan by voice vote. The transcript records no named roll‑call tally but shows unanimous voice approval. Several commissioners asked DIBS to meet directly with the nearby community and with state and county officials about water and dust mitigation before full operations begin.

Clarifying details recorded in testimony include: the site operator’s statement that the facility is capable of processing multiple feedstocks and that biochar deployment could be used for soil nutrient retention, water retention and fire mitigation; that some feedstocks (macadamia shell) are expected to qualify for high‑tier carbon credits; and that the company expects pre‑sales of carbon credits and pending state special‑purpose revenue bond authority (Act 198 / S.B. 2865) to support the capital program.

The department will record the payment plan approval on General Lease No. 275, monitor the operator’s compliance with lease conditions and track required environmental and community mitigation. Community members and commissioners requested a follow‑up update (suggested timeline: next island meeting/quarterly) on environmental controls, community benefits, and progress on water‑access arrangements.

Ending: The payment plan clears the way for the operator to restart and stabilize the Kauaʻi biochar facility, while commissioners and community members pressed for clear agreements on water access, dust control and local hiring.