President Donald Trump has asserted that the US-Japan natural gas facility to be built in Ohio will be the largest in the United States. Moreover, it is planned to have the capacity to have the capacity to power millions of homes. Japan is expected to invest $33 billion in the project which is led by SoftBank Group Corp. a subsidiary of SB Energy. The information is based off a US Commerce Department factsheet that outlines the investments. The site is expected to have capacity of 9.2 gigawatts, according to a statement from US Commerce Secretary Howard Lutnick on Tuesday.

Various Japanese companies such as Toshiba Corp. and Hitachi Ltd. have expressed their interest to be part of the monumental project. Moreover, other companies have expressed interest in two additional projects outlined by the president. Mitsui OSK Lines Ltd., Nippon Steel Corp., Modec Inc. and JFE Holdings Inc. are interested in providing supplies for a crude oil export facility project. On the other hand, Asahi Diamond Industrial Co. and Noritake Co. are interested in purchasing from a synthetic industrial diamond manufacturing facility.

Natural gas facility projects are becoming a go-to option for the U.S. with others such as the 1.5GW Bison Generation Station taking shape. Once complete, it is expected to be North Dakota’s largest.

Scope on the U.S.-Japan Natural Gas Facility in Ohio

The U.S.-Japan natural gas facility in Ohio is among the first set of projects to be developed as part of a deal between the U.S. and Japan. The deal covers Japan’s $550 billion commitment to avoid higher tariffs on its exports to the US. It also comes weeks before Japan’s Prime Minister Sanae Takaichi is set to meet with Trump in Washington. The power generated by the plant is comparable to about nine traditional reactors.

Furthermore, at full capacity, it could generate enough power to supply about 7.4 million homes on the largest US grid. The grid is operated by PJM Interconnection LLC. If built, the Ohio plant would be bigger than a 7.65-gigawatt gas project Pacifico Energy Group plans in Texas. Furthermore, it would also be one of the largest in the world. Currently, Dubai Electricity and Water Authority says its Jebel Ali facility is the biggest gas generator, at 9.547 gigawatts.

The Trump administration is seeking to accelerate the construction of big power plants to tame skyrocketing power bills as electricity demand is boosted by data centers and also factories. However, gas plants have their own challenges — including the surging global cost of turbines and lengthening average lead times.

Ohio plant belongs to an even larger trend of energy infrastructure investments such as international projects in the United States. As a case in point, the investment of the $36 billion in U.S. energy production, exports and industry, by Japan includes this natural gas plant with a Texas crude export plant and a manufacturing facility of synthetic diamonds in Georgia. These events explain how of capital in the world has been increasingly playing a role in increasing the infrastructure capacity of the U.S. and is an opportunity to EPC companies, contractors, and technology providers.

Project Factsheet

• Project: U.S.-Japan Natural Gas Facility in Ohio
• Country: United States
• State: Ohio
• Project Type: natural gas power plant

Status:

• Proposed development
• An extension of a comprehensive U.S.-Japan investment program.

Estimated Investment:

• Japan is anticipated to spend about US 33 billion.

Planned Capacity

• Anticipated power output: 9.2 gigawatts (GW).
• Approximated to be also similar to about nine standard reactors.

Power Supply Impact:

• Has the potential to produce power that will serve around 7.4 million households.
• Power also expected to feed into the PJM Interconnection grid

Strategic Context:

• One of a larger U.S.-Japan economic cooperation framework.
• Linked to Japan’s wider US$550 billion investment commitment tied to trade and tariff arrangements

Comparative Scale:

• Would exceed the planned 7.65 GW gas project by Pacifico Energy Group in Texas if completed
• Also would be one of the biggest gas power plants in the world.

Key Developers / Contractors

• Lead Developers: SoftBank Group Corp. (through SB Energy)

Interested Participants:

• Toshiba Corp.
• Also include Hitachi Ltd.