Osaka Gas has commenced commercial operations at the No.1 unit of its new 1.25GW Himeji gas-fired power plant in western Japan, reported Reuters.

This marks the start of expanded domestic thermal power generation capacity for Osaka Gas, with the Himeji facility utilising a gas turbine combined-cycle system.

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The Himeji power station comprises two units, each with a capacity of 622.6MW. According to Osaka Gas, the No.2 unit is scheduled to begin operations in May.

Once both units come online, the company’s domestic thermal power generation capacity is expected to increase from approximately 2GW to around 3.2GW.

The facility uses natural gas as fuel and is designed to meet rising electricity demand as data centres and AI-driven applications require more energy.

Japan’s Strategic Energy Plan, which was approved in February 2025, identifies natural gas as a realistic transition fuel towards achieving net-zero carbon emissions by 2050.

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The country has been increasing new gas-fired capacity through auctions, mainly to replace ageing coal plants, according to the Organisation for Cross-regional Coordination of Transmission Operators, Japan.

In April 2025, ArcLight Capital Partners reached a definitive purchase agreement with Osaka Gas USA and Kyuden International Americas to acquire their interests in Kleen Energy Systems, a 620MW natural gas-fired power generation asset in New England, US.

ArcLight stated that the acquisition aligned with its strategy to address increasing power demand driven by AI and electrification trends.

The company noted that AI-driven data centre development and increased electrification, such as electric vehicle adoption, was driving demand for sustainable and affordable power solutions.