BioEnergy Hawaii LLC, Kailua Kona, Hawaii, will start construction on its $50 million resource recovery and energy conservation facility by the fourth quarter of 2017, a report by Pacific Business News says.

The company will use the facility to divert municipal solid waste from the West Hawaii Sanitary Landfill and other locations, the report says. The 15-acre site is on a portion of property known as the West Hawaii Concrete Quarry.

The project, which is expected to be in operation by the beginning of 2019, will process about 200 tons of incoming MSW per day with a 400 tons per day capacity. About 70 percent would be suitable for energy conversion while the remaining 30 percent would be disposed of at the West Hawaii Sanitary Landfill, the report says.

The facility also plans to create several energy products such as engineered fuel, baseload electric power, renewable natural gas and other biofuels, the report says. The company is finalizing a renewable natural gas supply agreement with Hawaii Gas for use as West Hawaii hotels.

Ulupono Initiative, an investment firm that specializes in renewable energy, is helping to fund the facility, according to the report. The facility will also be financed with private equity with support from a $100 million special purpose revenue bond issued by the state.