Japanese power producer Jera has decided to buy two thermal power generation projects in northeast US, as part of a strategy to expand its overseas power business.
Jera has agreed to buy a 100pc stake in the 1,448MW Canal plant in Massachusetts and the 175MW Bucksport plant in Maine from US investment firm Stonepeak for an undisclosed sum.
The Canal plant consists of three power generating units. The 556MW No.1 unit burns oil as a generation fuel, while the 559MW No.2 unit uses both oil and natural gas. The 333MW No.3 unit consumes natural gas and diesel. The Bucksport plant burns natural gas and diesel.
Electricity demand in the populated northeastern states of the US is expected to remain firm, with a potential risk of electricity shortages in the peak winter demand season. But it is difficult to build power plants in the area, Jera said.
Jera is planning to decarbonise operations at the two power plants in the future by switching to biofuels, while exploring opportunities to develop large-scale renewable power projects, co-fire hydrogen at gas turbine units and utilise energy storage batteries.
