Japanese Firm Proposes LNG Plant For Oʻahu

The Globe and Atlas

Summary

JERA Co. proposes LNG plant to replace Oʻahu's oil-fired generators, amidst controversy.

Why this matters

This proposal could impact Hawaiʻi's energy transition strategy, influencing local and regional energy costs and carbon emissions.

Tokyo-based JERA Co., Inc. has put forward a plan to build a gas-fired generator facility on Oʻahu, aiming to replace aging oil-fired generators. This initiative follows a partnership between Gov. Josh Green and JERA, as part of efforts to reduce electricity costs and carbon emissions. Green stated the venture would bring substantial energy investments to Hawaiʻi.

The announcement follows criticism of the liquefied natural gas (LNG) initiative. At a hearing of the Hawaiʻi House Committee on Energy and the Environment, former University of Hawaiʻi professor Matthias Fripp claimed there was a $1.2 billion error in a study by the state energy office regarding LNG costs. Mark Glick, Hawaiʻi’s Chief Energy Officer, disputed this allegation.

JERA Americas Vice President Erik Montague emphasized that their proposal includes the cost of LNG and projects a 20% reduction in electricity generation costs compared to current oil use. Montague noted that LNG prices could be pegged either to global oil prices—albeit lower—or to U.S. natural gas prices, with options for Hawaiʻi to choose.

The proposal competes with Hawaiian Electric Co. Inc.’s plan to replace generators at the Waiau power plant, which the Hawaiʻi Public Utilities Commission (PUC) is considering. Glick urged the PUC to delay approval of HECO’s project in light of JERA’s proposal, but HECO rebutted claims that Glick was attempting to expedite JERA’s approval process. While a decision was expected Friday, the PUC has yet to issue an order.

JERA’s proposal requires further vetting and approval by the PUC and filing with relevant state, federal, and local agencies. Civil Beat’s environmental coverage is supported by several foundations.

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