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In October last year, Jera Americas signed a strategic partnering agreement with the government of Hawaii to support the US island state’s plans to shift away from oil by using alternative fuels, including natural gas.
Building on this agreement, Jera shared its proposal with the state of Hawaii earlier this year.
In addition, Jera is seeking approval from the US FERC to initiate the pre-filing process for its planned FSRU-based LNG import facility in Hawaii.
New power firm
As part of the next phase of the proposed project, Jera Americas has submitted a notice of intent to file an application for a certificate of public convenience and necessity (CPCN), with the Hawaiʻi Public Utilities Commission (PUC), according to a Jera Americas statement opn Friday.
The application would seek approval to establish a new Hawaiʻi-based regulated wholesale generation company (GenCo) that would own and operate the proposed power plant and supply power to Oʻahu’s electric grid, the company said.
Oʻahu, which includes nearly 1 million residents, uses more than 70 percent of the electricity generated in the state, and electricity demand is growing as transportation and industrial processes become increasingly electrified, it said.
Jera Americas noted that its proposal contemplates an approximately $1.5 billion, 500-megawatt modern natural gas-fueled generation facility at Barber’s Point on Oʻahu supported by offshore LNG import infrastructure estimated to cost around $500 million.
The proposed power plant is intended to replace aging oil-fired generation with newer, more efficient and fuel-flexible infrastructure that complements the continued growth of renewable resources by providing reliable power when it is needed to maintain grid stability, Jera Americas said.
If approved, the new GenCo would become a regulated public utility subject to ongoing oversight by the Hawaiʻi PUC.
Jera Americas said it is not proposing to replace Hawaiian Electric’s role as Oʻahu’s retail electric utility.
Hawaiian Electric would continue serving customers, operating the electric grid and their power plants, while GenCo would supply power under a regulatory framework established and approved by the PUC.
The proposal is intended to provide the state, regulators, and customers with an additional option to evaluate as Hawai‘i considers how best to address its long-term reliability, affordability, and infrastructure needs, Jera Americas said.
Preliminary activities
Jera Americas also said that it has advanced preliminary development activities associated with the proposed project, including engagement with landowners, turbine manufacturers, and local partners.
Other participating partners in the broader initiative include Hawai‘i Gas and Pasha Hawaii, which are supporting fuel distribution and maritime infrastructure planning associated with the development.
The proposed project remains subject to additional due diligence, environmental review, permitting, regulatory approvals, and stakeholder outreach, the firm added.
