Hawaii, Japan's JERA Propose Power-Generation Buildout on Oahu

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

A Japanese energy leader is proposing major changes to Hawaii's power-generation infrastructure.

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A New Power Source for Oahu?

Hawaii is turning to JERA Company Incorporated, which is Japan's largest power provider, to modernize Oahu's energy system. The state is building on a "Strategic Partnering Agreement" signed with JERA in October to "accelerate the replacement of aging, inefficient oil-fired generation" on the island, which is home to state capitol Honolulu, with "modern, high-efficiency infrastructure," according to the office of Governor Josh Green. Industrial Info is tracking more than $2.1 billion worth of active and proposed Power Industry projects across Hawaii, including more than $1 billion worth on Oahu.

"The Hawaii State Energy Office's Alternative Fuel, Repowering and Energy Transition Study estimates that approximately $2 billion will be required to upgrade Oahu's aging thermal infrastructure with more efficient equipment and lower-carbon fuel sources," Green's office said in a press release. "Consistent with that analysis, JERA's proposal outlines how new energy assets could be developed on Oahu."

JERA is proposing a power-generation facility that would feature both combined-cycle and simple-cycle capacity, supported by offshore infrastructure to import liquefied natural gas (LNG). Green's office says such a plan would "significantly reduce the generation cost of electricity compared to today's oil-based power, while improving grid reliability and reducing overall greenhouse gas emissions."

If developed, the facility would join several other power-generation projects on Oahu, which covers the same land as Honolulu County. AES Corporation expects to finish construction this summer on its Waiawa II Solar Plant in Mililani. The 30-megawatt (MW) plant is accompanied by a 240-megawatt-hour (MWh) battery energy-storage system (BESS) unit, which is being built on the same schedule.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can learn more about Waiawa II--including capacities, investment values and necessary equipment--from a plant profile and detailed project reports on the solar plant and BESS unit.

By the Numbers

• More than $2.1 billion: Total investment value of Power Industry projects across Hawaii
• About $2 billion: What Hawaii estimates will be required to upgrade Oahu's energy infrastructure
• 35%: JERA's equity interest in CF Industries' Blue Point low-carbon ammonia project

JERA's Expanding U.S. Role

JERA already has a substantial portfolio of U.S.-based projects. JERA Nex, a renewables-focused subsidiary, owns the Oxbow Solar Farm in Ventress, Louisiana, a 300-MW facility that was completed in fourth-quarter 2023, and co-owns the 95-MW Happy Solar Farm in Searcy, Arkansas, in a 50:50 joint venture with Schroders Greencoat LLP. Happy Solar Farm, which features a 10-MW BESS unit, was completed in second-quarter 2023.

Subscribers can read detailed plant profiles for the Oxbow and Happy solar farms.

JERA also holds a 35% equity interest in the Blue Point low-carbon ammonia project in Donaldsonville, Louisiana, which would be one of the world's largest "blue ammonia" projects if built as planned. Blue Point is designed to produce about 4,400 tons per day via a process that would capture roughly 1.6 million tons per year of carbon dioxide (CO2). Fertilizer giant CF Industries is spearheading the project, and JERA has agreed to offtake some of the product to supply its Hekinan Thermal Power Station in Chubu, Japan.

Subscribers can learn more about Blue Point from a plant profile and detailed project report, and can learn more about Hekinan in a plant profile. For more information on CF Industries' efforts to develop blue ammonia, see CF Industries Points to Blooming Fertilizer Market in 2026.

JERA also hopes to participate in the equity investment for its proposed development on Oahu and "to help mobilize additional capital to support development of the proposed infrastructure," Green's office said. "If approved, the new infrastructure would be developed over the next several years, with a target commercial operation date in 2030."

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for active and proposed power-generation projects in Hawaii, and can click here for a list of those specifically on Oahu.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.

Key Takeaways

• Japan's largest power provider aims to modernize Oahu's energy system.
• JERA already is playing an active role in several U.S.-based energy projects.
• The proposed development on Oahu could be operational as soon as 2030.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).