Maui's Hawaiian Commercial & Sugar Co. is the centerpiece of a multimillion-dollar federal effort to research renewable energy in Hawaii.

The U.S. Department of Energy hopes to appropriate $2 million a year for research on energy crop development and energy conversion technologies. The research will be conducted by the University of Hawaii's College of Tropical Agriculture and Human Resources.

Meanwhile, the Office of Naval Research has budgeted $2 million a year through 2015 to support complementary crop and technology assessments, as well as to evaluate long-term biomass production.

The funding does not mean $4 million annually for the sugar company, and “;there's no commitment whatsoever to produce a product for the Navy,”; said HC&S General Manger Chris Benjamin.

“;(The Navy's) objective is energy independence,”; he said. “;They want to develop models of energy production across the country.”;

The company must now assess the feedstock supply and feedstock conversion to fuel, he said. HC&S will be working with the university, the U.S. Department of Agriculture and the Navy with the research initiatives.

“;It's not a check that we're getting,”; Benjamin said. “;It's tremendous access that could bring a lot to the table for us.”;

The company has struggled with its sugar operations in recent years. Parent company Alexander & Baldwin Inc. has committed to sugar through this year. The company has said it plans to accelerate efforts to diversify by putting emphasis on energy production.

“;I don't mean to imply that HC&S is starting over,”; Benjamin said in remarks at a press conference on Maui yesterday. “;We already grow one of the best energy crops in the world: sugar cane. But we have to evaluate every step of the biofuel value chain to make sure we have the best model.”;

HC&S currently cultivates more than 35,000 acres of sugar cane in Maui's central valley. It produces about 7 percent of the electricity consumed on Maui, which represents 35 percent of the island's renewable energy supply through the burning of bagasse, the fiber remains of sugar cane plants. Federal officials have cited HC&S as an ideal candidate to lead renewable energy production.

“;We're going to evaluate other crops, but the good news is that we start off as experts in growing one of the best energy crops there is,”; Benjamin said. The research will also boost morale of the company's 800-strong work force, he added.