Japan-based company moves forward with Hawaii LNG plan
COURTESY JERA
JERA Americas estimates that liquefied natural gas transport ships would arrive every three to four weeks to supply a LNG storage and re-gasification unit off Kalaeloa. A supply ship and storage unit are shown here in a company rendering.
The Tokyo-based company that has been vying to bring liquefied natural gas (LNG) to Hawaii said it will file an application with the state for a new project that includes creating a power generation company.
JERA Americas officials said today they have notified the state Public Utilities Commission that they plan to seek approval to establish a new regulated wholesale power generation company called “GenCo” and based in Hawaii.
The company would “own and operate the proposed power plant and supply power to Oahu’s electric grid” under a regulatory framework approved by the PUC, the company said in a news release.
The move follows JERA’s proposal to invest $1.5 billion in a 500-megawatt natural gas-fueled generation facility at Kalaeloa supported by offshore LNG infrastructure, which is expected to cost around $500 million.
Gov. Josh Green signed a non-binding strategic partnering agreement with the company in October and has been a strong proponent of bringing LNG to Oahu.
Green and other supporters of LNG say it will be a key “bridge fuel” as the state transitions to 100% renewable energy by 2045, while detractors claim it distracts from renewable investments and will prolong Hawaii’s reliance on fossil fuels.
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“Energy has to become more affordable in Hawaii,” Green said in the news release. “The status quo isn’t good enough anymore, and I believe Hawaii will benefit from competition and new ideas.”
