JERA, Hawai’i Partner for Energy Transition

JERA Co Inc and the Hawaiian government have signed a collaboration agreement “focusing on fuel diversity and developing pathways toward decarbonization”, the Japanese integrated power company said.

The “strategic partnering agreement” between JERA and the governor’s office “is designed to help realize the Hawai’i State Energy Office’s ‘Alternative Fuels, Repowering and Energy Transition Study’, published in January 2025, which concluded in the short term that the state should accelerate its shift away from oil by using affordable and reliable alternative fuels, including natural gas”, JERA said in a statement on its website.

Governor Josh Green said in the statement, “By collaborating with JERA – Japan’s largest power producer and a recognized global leader in energy transition – we are gaining access to valuable expertise and experience that will help accelerate our decarbonization journey while improving reliability and affordability for our residents”.

JERA global chief executive Yukio Kani said, “As island communities, Japan and Hawai’i share similar challenges and opportunities in pursuing affordability, stability and sustainability. By working together, we aim to develop practical, innovative solutions that strengthen energy resilience and reduce costs for the people of Hawai’i”.

The company added, “JERA brings extensive experience in the development and operation of large-scale, reliable energy infrastructure worldwide, with a growing focus on low-carbon fuels, hydrogen, ammonia and renewable energy integration”.

In the study by the Hawai’i State Energy Office (HSEO), the agency proposed a new power plant that would run on natural gas supplied by a floating storage regasification unit.

“LNG emerged as the near-term fuel with the potential to cost-effectively reduce the state’s greenhouse gas emissions during the transition to economywide decarbonization in 2045, but more analysis is needed to quantify a range of potential benefits and to identify how those benefits can be maximized to residents at the appropriate level of infrastructure buildout”, the HSEO said in a statement on its website.

“Policy guardrails will be necessary to ensure that lower carbon fuels, such as LNG, will enable economywide decarbonization by 2045, not distract from it. There is a narrow but beneficial, path for the inclusion of LNG in the energy portfolio. Its build-out should not allow for backsliding on the RPS”.

The HSEO said, “Hawai‘i’s 100 percent Renewable Portfolio Standards (RPS) and decarbonization policies remain central to its energy transition. However, the post-wildfire landscape highlights the urgent need for new strategies to ensure affordable energy, attract capital and build a resilient, decarbonized energy system”.

“The continued development of solar, wind, battery storage and other renewable generating sources must occur in tandem with a fuel transition to ensure Hawai’i has a diverse energy portfolio – strengthening grid reliability, stabilizing costs and increasing affordability”, the HSEO said.

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