STATE OF HAWAIʻI RECEIVES PROPOSAL FROM JERA TO MODERNIZE OʻAHU’S ENERGY INFRASTRUCTURE

Proposal Follows Strategic Partnering Agreement; Outlines Pathway to Improve Affordability,

Strengthen Grid Reliability and Support Hawai‘i’s Clean Energy Goals

News Release from Office of the Governor, March 17, 2026

HONOLULU — JERA Co., Inc. (“JERA”), Japan’s largest power provider, has shared its proposal with the state of Hawai‘i to modernize Oʻahu’s energy system, building on the Strategic Partnering Agreement signed in October 2025.

Developed with input from Hawaiʻi energy stakeholders and supported by agreements with local partners, the proposal seeks to accelerate the replacement of aging, inefficient oil-fired generation on Oʻahu with modern, high-efficiency infrastructure designed to deliver affordability for Hawaiʻi families and businesses, enhance energy grid resilience and lower emissions.

“Hawaiʻi stands at a defining moment in our energy future. Our administration is focused on lowering costs for families, reducing carbon emissions, strengthening grid reliability and accelerating our transition to 100% clean, renewable energy,” said Governor Josh Green. “This proposal represents a transformative overhaul of our electrical grid and a tangible step to move Hawaiʻi off its historic dependence on oil. Through this partnership with JERA and its partners, we are bringing billions of dollars in new energy investments to Hawaiʻi — securing more affordable, reliable energy for the people of our state.”

JERA Americas CEO John O’Brien said, “Since 2023, JERA has been working in Hawai‘i to explore how our experience addressing similar energy challenges in Japan can help support the state’s energy transition. The Strategic Partnering Agreement deepened that effort, allowing us to work more closely with local partners to evaluate pathways to modernize Oʻahu’s energy system. This proposal reflects that collaboration and presents a path to reduce costs for residents and businesses, strengthen reliability and support Hawaiʻi’s clean energy goals. We are grateful for the opportunity to work alongside the state and local stakeholders to help bring the investment and expertise needed to advance this effort.”

Modern Infrastructure to Strengthen Oʻahu’s Grid

The Hawaiʻi State Energy Office’s Alternative Fuel, Repowering and Energy Transition Study estimates that approximately $2 billion will be required to upgrade Oʻahu’s aging thermal infrastructure with more efficient equipment and lower-carbon fuel sources. Consistent with that analysis, JERA’s proposal outlines how new energy assets could be developed on Oʻahu, including a ~500-megawatt hybrid combined-cycle and simple-cycle power facility, supported by offshore liquefied natural gas (LNG) import infrastructure.

The proposed facility would be designed with modern turbine technology that improves system stability and operational performance. It is expected to significantly reduce the generation cost of electricity compared to today’s oil-based power, while improving grid reliability and reducing overall greenhouse gas emissions. The proposed facility’s fast-start and fast-ramp capability is highly responsive to changing grid conditions, which will enable greater integration of renewables on Oʻahu.

JERA brings deep global expertise in high-efficiency combined-cycle gas turbine (CCGT) development, demonstrated through the modernization and construction of multi-gigawatt LNG-fired power plants in Japan and internationally. In the United States, JERA owns or has partial ownership in 10 power facilities.

Approximately 75% of the investment is related to the new power plant — infrastructure that would be required to replace aging generation and maintain grid reliability regardless of fuel source. The remaining 25% is related to LNG-related infrastructure, including a Floating Storage and Regasification Unit (FSRU) and associated supply components. Overall, more than 90% of the investment would be directed toward assets with long-term use or redeployment potential — including turbine equipment, grid-supporting infrastructure, pipelines and the FSRU — helping minimize stranded asset risk while maintaining flexibility for the future.

JERA is exploring opportunities to participate in the equity investment and to help mobilize additional capital to support development of the proposed infrastructure. If approved, the new infrastructure would be developed over the next several years, with a target commercial operation date in 2030.

A Coordinated Infrastructure Initiative 

JERA has partnered with local companies, including Hawaiʻi Gas, Pasha Hawaii and others to advance a coordinated modernization of energy and maritime infrastructure across Oʻahu. Each partner brings specialized expertise to strengthen Hawaiʻi’s energy security, system performance and supply chain resilience.

“Diversifying Hawaiʻi’s energy supply is a critical step toward strengthening our state’s energy security and reducing reliance on oil,” said Alicia Moy, Hawaiʻi Gas president and CEO. “Hawaiʻi Gas supports efforts to fortify and develop a pipeline infrastructure network that will be able to deliver the decarbonized fuels of the future, including renewable natural gas and hydrogen, which we currently blend into our fuel mix on Oʻahu today. The expansion of LNG availability for the state will not only lower costs and lower emissions, it will accelerate the transition to these future fuels. We are in support of modernizing our energy systems to provide for more stability, affordability and fuel efficiency for the people and businesses of Hawaiʻi.”

“Reliable maritime infrastructure is essential to keeping Hawaiʻi’s economy moving. Investments that expand LNG fueling capabilities and strengthen port energy systems can improve operational resilience, support cleaner shipping and help reinforce a more secure supply chain for the islands we serve,” said George Pasha, president and CEO, The Pasha Group.

Supporting Local Jobs and the Community 

The project is expected to support more than 1,100 skilled jobs and generate an estimated $150 million for Hawai‘i’s economy during development and construction, boosting workforce opportunities in the construction and energy sectors.

Once operational, the facility is expected to sustain approximately 170 permanent jobs and contribute an estimated $50 million annually to the state’s economy.

JERA is also looking to engage with the community by focusing on efforts that support workforce development, education and affordability in Hawai‘i. In addition, JERA plans to work with the state to establish an Energy Center of Excellence for the Pacific aimed at addressing the unique energy challenges of island economies.

Regulatory Review and Next Steps

The project would require approval by the Hawaiʻi Public Utilities Commission and other state and federal agencies. JERA anticipates initiating required state and federal permitting processes in the coming months, including potential filings with the Federal Energy Regulatory Commission (FERC) and the City and County of Honolulu, subject to final regulatory determinations.

A summary of JERA’s proposal to the state can be found here.

Information on the Hawai‘i Clean Energy Initiative can be found here.

About JERA

JERA is a global energy leader and Japan’s largest power generation company focused on providing cutting-edge solutions to the world’s energy issues. Established in 2015, the company produces one-third of Japan’s electricity and is one of the largest LNG buyers in the world. JERA has global reach and strength throughout the energy supply chain, including participation in upstream gas exploration and production, LNG projects, fuel procurement and transportation, and power generation globally. Through its U.S. subsidiary JERA Americas, the company owns thermal power plants, develops lower-carbon fuels such as hydrogen and ammonia, and advances energy infrastructure that delivers reliable and cleaner power to American businesses and communities. In support of a responsible energy transition, JERA aims to achieve net-zero CO₂ emissions from its domestic and overseas businesses by 2050.

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