#United States #Louisiana #JERA #Haynesville

JERA's Strategic Acquisition in Louisiana's Haynesville Shale

JERA Co. Inc., a prominent player in the global energy sector and Japan's largest electricity producer, has made headlines with the announcement of its successful acquisition of the South Mansfield upstream asset in the Haynesville Shale located in western Louisiana. This acquisition was conducted through its subsidiary, JERA Americas Inc., and represents a strategic milestone in the company’s expansion plans within Louisiana's energy industry.

The transaction, referred to as the Haynesville Acquisition, is significant not only for JERA but also for the local economy. It enhances JERA’s commitment to investing in various energy resources within the region, including natural gas, liquefied natural gas (LNG), renewable energy projects, advanced fuels, and carbon reduction technologies. Collectively, these initiatives represent a substantial financial outlay, amounting to billions of dollars intended to bolster job creation, increase local tax revenues, and stimulate long-term economic activities.

Key Louisiana Projects

JERA's ongoing projects in Louisiana signify its dedication to fostering sustainable energy development. Among these initiatives are:

• - Blue Point Low-Carbon Ammonia Project: This project, situated in Ascension Parish, is set to be one of the largest facilities of its kind globally. In collaboration with partners CF Industries and Mitsui Co., it aims to produce about 1.4 million tons of ammonia annually, utilizing natural gas as its primary feedstock while also integrating carbon capture and storage technologies.

• - Oxbow Solar Farm: Located in Pointe Coupee Parish, this 300-megawatt solar power facility stands as Louisiana's largest solar installation. It has provided approximately 400 construction jobs over a two-year period and promises ongoing economic benefits to the local community post-completion.

• - LNG Offtake Agreements: JERA has secured agreements for 1.2 million tons per annum from Cameron LNG, alongside additional contracts for up to 3 million tons per annum of future LNG offtake from Louisiana.

• - Carbon Capture Innovations: Through JERA Ventures, JERA's venture capital branch, partnerships with entities like Newlab New Orleans are fostering the development and commercialization of next-gen carbon capture technologies specifically targeting emissions from gas-fired power generation.

CEO of JERA Americas, John O'Brien, emphasized the significance of the Haynesville Acquisition for its alignment with JERA’s growth strategy, stating, "Louisiana is a strategic priority for JERA, and the Haynesville Acquisition underscores our intention to be a long-term partner in Louisiana's energy economy." He highlighted the company’s commitment to prioritizing safety and operational excellence while fostering respectful relationships within the local communities.

The acquisition not only focuses on growth and sustainability but also aims to build a reliable and environmentally responsible energy framework in the region. JERA’s $1.5 billion upfront investment further illustrates its dedication to enhancing the area's energy infrastructure, capitalizing on proximity to Gulf Coast facilities, and leveraging existing pipeline access.

As JERA continues to expand its footprint in Louisiana, it ultimately aims to balance energy demands with environmental considerations, showcasing a commitment to both community development and ecological responsibility. The Haynesville Acquisition is, therefore, more than a business move; it represents a foundational step towards a sustainable energy future rooted in local engagement and innovation.

About JERA Americas

JERA Americas positions itself as a significant player in the power generation landscape, focusing on sustainable, affordable, and reliable energy solutions across the United States. As a leader in lower-carbon fuel projects such as LNG, clean hydrogen, and ammonia, JERA Americas is well-equipped to contribute to both national and global energy markets. Headquartered in Houston, Texas, it serves as the American counterpart to JERA in Japan, which is responsible for producing about 30% of Japan's electricity. For more information, visit jeraamericas.com.