JERA Americas, the US subsidiary of Japan’s JERA, is reportedly advancing a plan to develop a natural gas-fired power plant and offshore liquefied natural gas (LNG) import infrastructure on the island of Oahu, Hawaii, at a total cost of approximately $2 billion.
JERA Americas has reportedly signed a Strategic Partnering Agreement with the State of Hawaii and is pursuing a project to build a new natural gas-fired power plant in the Barbers Point area of Oahu. To this end, the company reportedly plans to establish a new generation subsidiary (GenCo) and file for a Certificate of Public Convenience and Necessity (CPCN) with the Hawaii Public Utilities Commission (PUC). The project is reported to be planned as a combined development of the power plant along with an offshore LNG import terminal.
The original report does not specify the gas turbine manufacturer or the engineering, procurement and construction (EPC) contractor.
The power plant construction cost is reported at approximately $1.5 billion, with the offshore LNG import infrastructure adding approximately $500 million, for a total project cost of approximately $2 billion. The generation capacity is approximately 500MW, and the construction start date has not yet been fixed, as the project remains in the permitting process, according to the report.
Hawaii has reportedly relied heavily on oil-fired generation, and this project is understood to be part of the state’s broader strategy to modernize its energy infrastructure and transition its generation fuel mix, it is reported.
Whether the Hawaii PUC approves the CPCN permit, the construction start timeline following approval, and the specific design and operating approach for the offshore LNG import terminal are cited as points to watch, it is reported.