Navy awards $309 million contract for facility to clean fuel-contaminated water in Hawaii

The Navy on Tuesday awarded a $309 million contract to build a permanent water treatment plant for a well in Hawaii that has been shut down since late 2021 after being contaminated by jet fuel.

Hensel Phelps, a Colorado firm, contracted with the Naval Facilities Engineering Systems Command Hawaii to construct a facility for the Red Hill water shaft capable of treating 10 million gallons of water per day, according to a Navy news release Thursday.

It is expected to be completed by August 2029, according to the Navy.

The Red Hill shaft was one of three used by the Navy for its water distribution system that serves military communities on and near Joint Base Pearl Harbor-Hickam.

In November 2021, jet fuel from the underground World War II-era Red Hill Bulk Fuel Storage Facility near the joint base spilled and seeped into the aquifer.

The Navy isolated the contaminated Red Hill shaft from the distribution system after residents complained of putrid water and a host of health issues arising from drinking and bathing in the water.

In January 2022, the Navy installed a series of massive carbon filters at the site of the Red Hill shaft, which has since pumped, filtered and released more than a million gallons of water each day into the nearby Halawa Stream.

The continuous pumping is intended to prevent petroleum contamination in the well from migrating elsewhere in the aquifer.

The Navy initiated an environmental assessment in June 2023 for plans to build an interim treatment facility, with construction of a permanent plant to follow.

Water eventually pumped to customers via either the interim or permanent treatment facilities would need to meet safe drinking water standards set by both the U.S. Environmental Protection Agency and the Hawaii Department of Health, according to the Navy.

Construction of the temporary system began last year and is expected to be completed and operational by 2027.

In May, the Navy issued a finding of “no significant impact” for construction of the permanent facility to be built by Hensel Phelps.

The permanent facility will treat water using granular activated carbon, which is made from organic materials high in carbon, such as coal, peat or wood.

The Navy is permitted to pump up to 5 million gallons a day from the Red Hill shaft.

The contract also calls for modifications to the Red Hill Pump Station, the water shaft, structures supporting water treatment, fencing and electrical distribution.

The Navy has initially obligated just over $109 million from its fiscal year 2026 military construction funds for the project, the news release states.

The full project will be incrementally funded in coming fiscal years.