Gov. Josh Green says that Hawaiian Electric and Japan's largest power generation company JERA may be close to finalizing a deal on liquefied natural gas.
JERA has proposed building a new facility that would burn natural gas for power on Oʻahu. The governor told HPR a deal could happen as soon as June 8.
“What will happen, I believe, (is that) JERA will build a 500 MW power plant, which ultimately HECO will have an opportunity to be a full partner in,” Green said on The Conversation on June 4.
Green added that he's had conversations with U.S. Secretary of Energy Chris Wright about a large, low-interest loan for HECO to modernize the state’s electric grids.
Green said he anticipates federal investments will go towards both natural gas and renewable infrastructure.
When reached for comment, HECO downplayed the governor's remarks. HECO executive Jim Kelly said in a statement to HPR that “JERA has been open about their plans, and we have had conversations with them, just as we do with numerous other energy players. There is nothing to talk about or announce at this time.”
Kelly also stated that HECO “appreciate(s) the governor’s focus on the diversity of resources, affordability, and lower emissions, and we share that commitment.”
The utility had previously confirmed to HPR that it had an application for “energy project financing” under review by the U.S. Department of Energy.
JERA did not respond to a request for comment.
The state entered an agreement with JERA to pursue a natural gas project this past October following a Hawaiʻi State Energy Office report that concluded importing liquefied natural gas instead of oil could reduce Oʻahu's energy costs. Critics argue that importing LNG does not serve the state's mandate to reach 100% renewable energy by 2045 and that the reported savings have been exaggerated.
Want to learn more? Check out HPR’s recent LNG coverage
- Gov. Josh Green on the legislative session, Hawaiʻi’s energy resources
- Some question if the JERA natural gas project will deliver meaningful savings
- Energy experts debate what will lower costs as oil prices rise
- JERA wants to bypass the competitive bidding process. What is that exactly?
- State Energy Office acknowledges cost-savings miscalculation in natural gas study
- Japan's largest energy company releases proposal to power Oʻahu's grid with LNG
