Pacific Biodiesel and Aloha Petroleum Ltd. have begun testing biodiesel in about 15 buses in Oahu Transit Inc.’s TheBus fleet.

Aloha Petroleum, which holds the City and County of Honolulu contract, buys the biodiesel from Pacific Biodiesel, then blends it with its diesel.

If the test is successful, the blend of 80 percent diesel and 20 percent biodiesel made from locally sourced vegetable oil could fuel the entire fleet of 518 buses, which uses 7 million gallons of diesel each year at an annual cost of $28 million.

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