Statewide Decarbonization Study

JERA has been working with the State of Hawai‘i and local stakeholders since 2023 to help identify practical, affordable solutions to the state’s energy challenges. As part of this effort, JERA commissioned an independent global consulting firm with extensive experience in Hawai‘i’s energy system to evaluate potential pathways for achieving the state’s 2045 renewable energy goals.1

The Potential Pathways to Decarbonized Power for the State of Hawai‘i report, conducted in 2024, examines various options to decarbonize Oahu’s energy system while maintaining reliability and lowering costs for residents.

Read Full Analysis

The report evaluates three scenarios:

  1. Batteries and Biofuels – Renewable energy supported by batteries and biofuels, which is similar to Hawaiian Electric’s (HECO) Integrated Grid Plan (IGP) but applied to a load forecast consistent with Hawai‘i’s net zero goal.
  2. Green Gas – Renewable energy supported by imported hydrogen and/or synthetic natural gas (SNG) and locally produced renewable natural gas (RNG).
  3. Diversified Gas – Renewable energy supported by liquefied natural gas (LNG), transitioning to RNG/SNG/hydrogen in the future.

The report also assesses five potential low-carbon future fuels — Diesel, Methane, Hydrogen, Methanol and Ammonia — based on cost and ratepayer impact, availability and technology readiness.

Key Takeaways

Key takeaways from the report include:

  • The Diversified Gas pathway had the lowest cost of power and the lowest emissions among the scenarios evaluated and is the most feasible due to technology readiness and supply availability.
  • Pathways that rely heavily on biofuels or green gas face significant challenges today, including higher costs, limited supply, and technologies that are still developing.
  • Hawai‘i is likely to depend on a mix of imported and local fuels as locally produced options alone are insufficient to meet demand at scale.

No single solution can meet the state’s energy needs today. However, the analysis shows that using LNG as part of O‘ahu’s evolving energy mix can reduce costs and emissions compared to continued reliance on oil, while creating a bridge to cleaner technologies in the future. Building on this initial analysis completed in 2024, JERA has remained active in refining and progressing specific solutions to advance pragmatic solutions to help the State of Hawaii reach its energy goals.

JERA is committed to working collaboratively with local stakeholders to support Hawai‘i’s clean energy transition.

1 Per typical contracts with consulting firms, JERA cannot disclose which firm completed the study.