LNG will provide cleaner power for Hawai’i

✕ MYTH

LNG is worse than oil for emissions.

✓ FACT

Switching to LNG will reduce Hawai’i’s power sector emissions by 38-44% between now and 2045.

An Opportunity To Change for the Better

The oil-fired power generation that provides nearly 70% of O’ahu’s electricity is highly carbon intensive.

Because of this, the emissions intensity of power produced on the island is nearly double the U.S. average. Each megawatt hour (MWh) of electricity generated on O’ahu results in around 670kg of CO2 equivalent emissions, compared to the U.S. average of just 345kg.

In fact, the emissions intensity of O’ahu’s power grid is more comparable with coal-dominated countries like Indonesia and the Philippines than it is with most U.S. states. Coal is the highest-emitting of all fossil fuels when combusted for electricity.

By switching from oil to liquefied natural gas (LNG) – as JERA is proposing – O’ahu can significantly reduce the near-term emissions profile of its power sector as Hawai’i transitions towards the 2045 target of 100% renewable energy.

Multiple Data Points Show Gas-Fired Power Is Cleaner

Independent global research and analysis demonstrates clearly that gas-fired power produces significantly fewer emissions than oil. Furthermore, recent oil-to-LNG switching projects in the islands of Jamaica, Gibraltar, and Malta have been proven to reduce CO2 emissions and improve air quality. For example, Malta reduced its CO2 emissions in the power sector by 56% after switching from oil to LNG for power generation in 2017, based on data from the International Energy Agency (IEA).

In its 2019 report, The Role of Gas In Today’s Energy Transitions, the IEA highlighted a “substantial” advantage in combusting natural gas compared to oil – around 20% fewer CO2 emissions and far fewer particulate emissions that cause air pollution.

Similarly, the United States Energy Information Administration – the statistical agency of the Department of Energy – recognizes that gas combustion results in around 28% fewer emissions than oil.

How does LNG impact air quality & health?

Modern natural gas power plants produce much less of the air pollutants that cause smog and breathing problems, compared to oil-fired plants.

For O’ahu, the impact can be even greater. The Hawai’i State Energy Office’s Alternative Fuel, Repowering, and Energy Transition Study identified that switching from oil to LNG would lead to a 38-44% reduction in lifecycle carbon intensity of power production on O’ahu.

Modelling by JERA outlines similar benefits. A shift from oil to LNG is projected to reduce cumulative greenhouse gas emissions from power generation on O’ahu by around 40% by 2045, with improved local air quality because of a reduction in particulates.

Cumulative emissions avoided by 2045 through switching from oil to LNG would be the equivalent of taking more than 12 million gasoline-powered vehicles off the road for a full year.

Increased Efficiency Will Help Drive Reduced Emissions

This scale of emissions reduction reflects not only the positive impact of fuel switching but greater efficiency of modern gas-fired power plants.

O’ahu’s Kahe and Waiau plants have an average age of 58 years and only 34% of inputted energy is converted into power. By contrast, the latest combined cycle gas turbines can convert 57% of energy into power.

In short, JERA’s proposed gas-fired power plant on Oahu would reduce emissions by using less fuel to generate the same amount of power that the current oil-fired infrastructure does.

Importantly, switching to LNG and gas from 2030 would also result in an estimated 20% fewer cumulative greenhouse gas emissions for Oahu than an accelerated adoption of biofuels, which would take longer to be fully implemented and require oil-fired power to stay in active use until 2045.

Switching from oil to gas will also provide local air quality benefits on O’ahu.

As the International Energy Agency has outlined, combustion of gas emits significantly fewer pollutants like fine particulate matter (PM2.5), sulfur oxides dioxide, nitrogen oxides (NOX) and volatile organic compounds (VOCs) compared to other fossil fuels.

Managing Emissions Through the Supply Chain

Production and transport of LNG results in an emissions profile that must be managed – including fugitive methane emissions.

The global gas industry has placed a strong focus on improved detection and mitigation of methane leaks over the past decade. Members of the Oil and Gas Climate Initiative (OCGI) have reduced aggregate upstream operated methane emissions by 63% since 2017.

Meanwhile, JERA is a co-founder of CLEAN, a collaborative initiative to reduce methane emissions and improve data transparency through the LNG value chain. CLEAN is supported by the governments of Japan, South Korea, Australia and the United States, along with the European Commission.

As one of the world’s biggest handlers and buyers of LNG, JERA is able to access low-methane supply from within its global portfolio.

In Summary

JERA’s LNG-to-power proposal will significantly reduce Oʻahu’s power sector emissions over the next 20 years while improving efficiency and reliability of generation.

Reliable, lower-emissions electricity production using LNG will support the ongoing rollout of renewable energy on Oʻahu.