Hokkaido Electric will build a new gas-fired power plant and LNG terminal by the mid-2030s

Hokkaido Electric Power announced on Friday that it would build a new gas fired power station in Tomakomai (northern Japan) and a terminal for liquefied natural gas (LNG) by the mid-2030s. This will be to meet the rising demand of electricity from data centres and semiconductor plants.

The project is part the utility's strategy to expand their gas business. They cite significant potential in Hokkaido for a switch towards lower-carbon gas, where oil and coke still make up a large portion of energy consumption.

The new plant is expected to have a 0.5-1 gigawatt capacity and will be able to use cleaner fuels like hydrogen, ammonia, along with?gas. Its operations are scheduled to begin around fiscal year 2035.

The LNG terminal can accommodate large carriers, and it will have a large LNG storage tank.

Arata Tanimura is the deputy general manager for corporate planning. She told reporters that Hokkaido Electric has not disclosed the size of the investment. However, the project falls within the 2,5 trillion yen (16 billion dollars) the company plans to invest in between fiscal 2025-2035 as part of a long-term strategy unveiled last summer.

The utility operates a gas-fired plant and an LNG Terminal in Ishikari to the north of Tomakomai. Only one unit in?operation. Two additional units are under construction and scheduled to be operational?by fiscal year 2033. Total capacity will then reach 1.7 GW.

The company announced in December that it would purchase?gas assets on Hokkaido, including production plants, marketing operations, and pipelines from Japan Petroleum Exploration for 31 billion yen to strengthen its gas businesses.

Separately Hokkaido Electric aims to restart the No.3 reactor of the Tomari Nuclear Power Station in 2027. The No.1 reactor and No.2 are expected to return to service in the first half 2030s. ($1 = 154.1500 yen) (Reporting by Yuka Obayashi. Editing by Jane Merriman

(source: Reuters)