North America | April 20, 2026

JERA proposes a 500-MW facility on Oahu to replace ageing oil units and cut energy costs by 20 %.

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USA, Hawaii, Oahu: Japan’s largest power producer, JERA, has unveiled plans to invest $2 B in a new natural gas-fired power station on the Hawaiian island of Oahu. The proposed 500-MW plant would combine both combined-cycle and simple-cycle technologies, aiming to replace older oil-based generation.

The Tokyo-based company said the project follows an agreement reached with Hawaiian authorities last year, tied to a broader commitment to develop energy infrastructure in the United States. JERA, which already holds stakes in 10 US plants, believes the new facility could reduce electricity costs on Oahu by about 20 %.

The plant would be supported by offshore liquefied natural gas (LNG) infrastructure, including a floating storage and regasification unit. JERA has also pledged to increase its purchases of US LNG over the next two decades.

The announcement comes shortly after regulators approved a separate $2-B plan by Hawaiian Electric to replace six ageing oil-fired units at the Waiau power station with new fuel-flexible turbines. The Waiau facility has been in operation since 1938.

Hawaii Governor Josh Green described JERA’s proposal as a major step towards modernising the state’s grid and reducing reliance on oil, while attracting significant investment.

JERA Americas CEO John O’Brien said the project would improve reliability, lower costs, and support clean energy ambitions. The company expects the plant to begin operating by 2030, with permitting set to begin soon.

Source: Power

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#Hawaii#Japan#JERA#LNG#natural gas plant#power plant#USA

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