Japanese power generation company JERA has concluded a stock purchase agreement with an affiliate of funds managed by investment firm Stonepeak to acquire a 100% interest in two US thermal projects.

The two projects, with a total capacity of 1.63 gigawatts, are the Canal Thermal Power Station in Massachusetts ( whose units run on oil and natural gas ) and the Bucksport Thermal Power Station in Maine ( which runs on natural gas ).

JERA did the deal via its subsidiary JERA Americas. The company notes that the northeastern United States, a densely populated region, has a huge demand for electricity, but it is also a challenging location for new large-scale power projects and tends to have tight power demand during winter. For this reason, highly flexible thermal power generation is of great importance. Both the Canal and Bucksport thermal power stations contribute to stable supply of electricity in the region during emergencies and peak times, it says.

The Japanese firm aims to enhance the value of the projects by leveraging its technological capabilities to further improve operational and maintenance efficiency.

Using existing large-scale power projects, which do not require the construction of new power transmission networks, is an important part of promoting decarbonization in the region, JERA says. The firm also says it will pursue commercially viable decarbonization paths, including low-carbon biofuels in place of traditional fuels, as well as large-scale renewable projects, blending hydrogen in gas turbines, and energy storage solutions.