Japan's JERA to buy two U.S. thermal power stations

[May 13, 2022]  TOKYO (Reuters) - JERA, Japan's biggest power generator, said on Friday it had agreed to buy all stakes in two thermal power stations in the United States with a total capacity of 1.63 gigawatts from investment firm Stonepeak for an undisclosed sum.

The plants are the Canal thermal power station in Massachusetts and the Bucksport thermal power station in Maine, JERA said, adding the deal would be finalised upon completion of all necessary approval and authorisation procedures.

JERA plans to pursue decarbonisation paths at the plants, including low-carbon biofuels in place of traditional fuels, renewable power, blending hydrogen in gas turbines and energy storage solutions, the company said in a statement.

JERA, a joint venture between Tokyo Electric Power Company Holdings Inc and Chubu Electric Power Co Inc, said on Thursday it would invest 1.4 trillion yen ($11 billion)over the next four years to expand overseas assets and cut carbon emissions, a trend it expects to accelerate following Russia's invasion of Ukraine.

Russia calls its actions in Ukraine a "special military operation".

($1 = 129.1000 yen)

(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)

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