Jera proposes power/LNG for Hawaii
Japan's Jera has submitted a proposal to modernise energy infrastructure in Oahu, Hawaii, with construction of a 500MW gas-fired power plant supported by offshore LNG import infrastructure.
The power project will be a simple-cycle/combined-cycle hybrid. The cost is estimated at US$1.97bn. Approximately 75% of the investment is related to the power plant and the remaining 25% to LNG-related infrastructure, including a floating storage and regasification unit and other supply components.
Jera is exploring opportunities to participate in the equity investment and help mobilise additional capital to support development of the projects. If approved, the projects would be developed with a target commercial operation date in 2030.
The proposal follows an October strategic partnering agreement between Jera and the office of Hawaii governor Josh Green to support the state's decarbonisation goals and energy transition. Jera owns or has partial ownership in 10 US power facilities. The company anticipates initiating state and federal permitting in the coming months, including potential filings with the Federal Energy Regulatory Commission and the city and county of Honolulu.
The proposed projects would accelerate the replacement of ageing, inefficient oil-fired generation. Hawaii has a goal to use full renewable electricity by 2045 but the Jera proposal highlights its need for additional types of power. "While deeply respectful of this commitment, experience from island systems around the world – including Japan – shows that renewables alone cannot yet meet demand at all hours without firm, flexible generation to maintain reliability and affordability," the proposal states. "Without such a bridge, even the most ambitious energy transition plans risk becoming slower and more costly."
