JERA submits proposal to modernise Hawai’i energy infrastructure

Developed with input from Hawai'i energy stakeholders and supported by agreements with local partners, the proposal seeks to accelerate the replacement of ageing, inefficient oil-fired generation on O'ahu with modern, high-efficiency infrastructure designed to deliver affordability for Hawai'i families and businesses, enhance energy grid resilience, and lower emissions.

“Hawai'i stands at a defining moment in our energy future. Our administration is focused on lowering costs for families, reducing carbon emissions, strengthening grid reliability and accelerating our transition to 100% clean, renewable energy,” said Governor, Josh Green. “This proposal represents a transformative overhaul of our electrical grid and a tangible step to move Hawai'i off its historic dependence on oil. Through this partnership with JERA and its partners, we are bringing billions of dollars in new energy investments to Hawai'i – securing more affordable, reliable energy for the people of our state.”

JERA Americas CEO, John O’Brien, added: “Since 2023, JERA has been working in Hawai‘i to explore how our experience addressing similar energy challenges in Japan can help support the state’s energy transition. The Strategic Partnering Agreement deepened that effort, allowing us to work more closely with local partners to evaluate pathways to modernise O'ahu’s energy system. This proposal reflects that collaboration and presents a path to reduce costs for residents and businesses, strengthen reliability and support Hawai'i’s clean energy goals. We are grateful for the opportunity to work alongside the state and local stakeholders to help bring the investment and expertise needed to advance this effort.”

The Hawai?i State Energy Office’s Alternative Fuel, Repowering and Energy Transition Study estimates that approximately US$2 billion will be required to upgrade O'ahu’s ageing thermal infrastructure with more efficient equipment and lower-carbon fuel sources. Consistent with that analysis, JERA’s proposal outlines how new energy assets could be developed on O'ahu, including a ~500 MW hybrid combined-cycle and simple-cycle power facility, supported by offshore LNG import infrastructure.

The proposed facility would be designed with modern turbine technology that improves system stability and operational performance. It is expected to significantly reduce the generation cost of electricity compared to today’s oil-based power, while improving grid reliability and reducing overall greenhouse gas emissions. The proposed facility’s fast-start and fast-ramp capability is highly responsive to changing grid conditions, which will enable greater integration of renewables on O'ahu. JERA brings deep global expertise in high-efficiency combined-cycle gas turbine (CCGT) development, demonstrated through the modernisation and construction of multi-gigawatt LNG-fired power plants in Japan and internationally. In the US, JERA owns or has partial ownership in 10 power facilities.

Approximately 75% of the investment is related to the new power plant – infrastructure that would be required to replace ageing generation and maintain grid reliability regardless of fuel source. The remaining 25% is related to LNG-related infrastructure, including an FSRU and associated supply components. Overall, more than 90% of the investment would be directed toward assets with long-term use or redeployment potential – including turbine equipment, grid-supporting infrastructure, pipelines, and the FSRU – helping minimise stranded asset risk while maintaining flexibility for the future.

JERA is exploring opportunities to participate in the equity investment and to help mobilise additional capital to support development of the proposed infra-structure. If approved, the new infrastructure would be developed over the next several years, with a target commercial operation date in 2030.

JERA has partnered with local companies, including Hawai'i Gas, Pasha Hawaii and others to advance a co-ordinated modernisation of energy and maritime infrastructure across O'ahu. Each partner brings specialised expertise to strengthen Hawai'i’s energy security, system performance, and supply chain resilience.

“Diversifying Hawai'i’s energy supply is a critical step toward strengthening our state’s energy security and reducing reliance on oil,” said Alicia Moy, Hawai'i Gas President and CEO. “Hawai'i Gas supports efforts to fortify and develop a pipeline infrastructure network that will be able to deliver the decarbonised fuels of the future, including renewable natural gas and hydrogen, which we currently blend into our fuel mix on O'ahu today. The expansion of LNG availability for the state will not only lower costs and lower emissions, it will accelerate the tran-sition to these future fuels. We are in support of modernising our energy systems to provide for more stability, affordability and fuel efficiency for the people and businesses of Hawai'i.”

“Reliable maritime infrastructure is essential to keeping Hawai'i’s economy moving. Investments that expand LNG fuelling capabilities and strengthen port energy systems can improve operational resilience, support cleaner shipping and help reinforce a more secure supply chain for the islands we serve,” added George Pasha, president and CEO, The Pasha Group.

The project is expected to support more than 1100 skilled jobs and generate an estimated US$150 million for Hawai'i’s economy during development and construction, boosting workforce opportunities in the construction and energy sectors.

Once operational, the facility is expected to sustain approximately 170 permanent jobs and contribute an estimated US$50 million annually to the state’s economy.

JERA is also looking to engage with the community by focusing on efforts that support workforce development, education and affordability in Hawai'i. In addition, JERA plans to work with the state to establish an Energy Center of Excellence for the Pacific aimed at addressing the unique energy challenges of island economies.

The project would require approval by the Hawai'i Public Utilities Commission and other state and federal agencies. JERA anticipates initiating required state and federal permitting processes in the coming months, including potential filings with the Federal Energy Regulatory Commission (FERC) and the City and County of Honolulu, subject to final regulatory determinations.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19032026/jera-submits-proposal-to-modernise-hawaii-energy-infrastructure/