Japanese energy company files intent to build $2B LNG power plant on Oahu

HONOLULU (HawaiiNewsNow) – A Japanese energy company has filed a letter of intent with state utility regulators, moving closer to building a $2 billion liquefied natural gas power plant on Oahu.

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JERA Americas filed the letter of intent with the Hawaii Public Utilities Commission on Friday.

The company says the proposed Longboard LNG Project would include a new power plant and an offshore import terminal at Kalaeloa (Barbers Point), capable of generating 500 megawatts — roughly one-third of Oahu’s electricity.

What JERA is proposing

JERA says it is proposing a new wholesale electric generation company that would be regulated directly by the Public Utilities Commission, giving Oahu another option for electricity. The company says it is not proposing to replace Hawaiian Electric (HECO) as the retail electric utility.

“We think that by transitioning from the oil that is used today for about 70% of the power that’s made in Oahu to gas. Gas, fortunately, is a lower cost form of energy and so that, we think, will help drive affordability here,” said Erik Montague, JERA Americas vice president of development. “It’s all part of the mix of needing to upgrade power plants and invest capital in new facilities.”

Environmental and utility pushback

Environmental groups are raising alarm over the proposal. Isaac Moriwake of Earthjustice said the plan contradicts Hawaii’s renewable energy goals.

“This is a fossil fuel company that now wants to set up permanent shop here as a utility, or they’re going to call themselves a utility,” Moriwake said. “And that really just gives the lie to their claim that this is just a so-called bridge on the way to our 100% renewable future.”

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HECO CEO Scott Seu said the utility, which wants to expand renewables and energy storage, expressed concern.

“We have older power plants on our system that we would also seek to renew. The issue here, though, is the how and in particular, with JERA proposing to establish themselves as a brand new — probably the dominant generating company, generating utility company in Hawaii. That’s where we have a lot of concerns and questions,” Seu said.

Legislative reaction

State Rep. Scot Matayoshi, chair of the House Consumer Protection and Commerce Committee, said he hopes the project could lower energy costs, but that lawmakers need to see JERA’s full proposal before drawing conclusions.

“Right now, it’s just kind of pie in the sky,” Matayoshi said. “They’re telling us all of the good parts and we need to make sure that all the bad parts get into the sunlight too.”

Timeline and community meetings

JERA says it intends to submit its formal application in the first quarter of 2027. With regulatory approvals, the company hopes to begin generating energy by 2030.

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JERA is holding two community open houses: