The Hadera Expansion Project from Kenon Holdings Ltd - new gas-fired capacity gets green light

Reviewed: ad hoc news New Release & Launch desk. Edited and checked on 2026-06-23, 05:53. Details in the imprint.

the Hadera Expansion Project from Kenon Holdings Ltd lands in a very physical way: more pipes in the ground, more turbines on concrete, more humming air next to the existing OPC Hadera power station. For residents driving past the site, the new stacks mean a denser industrial skyline and, crucially, more reliable electricity on peak evenings. OPC Energy CEO Giora Almog frames it as a quiet but decisive upgrade to Israel's power backbone, not a flashy landmark.

New combined-cycle unit approved

The Hadera Expansion Project centers on a new combined-cycle gas turbine unit with around 340 megawatts of capacity, bolted onto the existing OPC Hadera plant footprint. OPC Energy recently confirmed it has received capacity tariff approval from the Israeli Electricity Authority and that the conditions for financial close of the project have been met, clearing the key regulatory and financing hurdles for construction to proceed.

The project is structured under Israel's capacity tariff framework for conventional generation units, which provides a regulated revenue stream tied to availability rather than just spot power prices. That design gives OPC more visibility on cash flows from the new unit, an important point for Kenon as majority shareholder watching long-term returns from its energy subsidiary.

What this means for Israel's grid

Once the Hadera Expansion Project is online, OPC expects to bolster the country's flexible gas-fired fleet at a time when intermittent solar capacity is rising fast. The new unit will be able to ramp up and down more efficiently than older steam plants, helping the grid operator balance sun-soaked afternoons and cooler night demand.

Residents in the Hadera region may never know the project by name, but they will feel its presence when air conditioners and industrial motors keep running smoothly on sweltering summer evenings. The plant's location near major load centers and gas infrastructure reduces transmission losses and avoids the need to build long new high-voltage lines across farmland and towns.

How OPC positions the project

OPC Energy describes the Hadera Expansion Project as a natural next step within its strategy to grow efficient, flexible generation, both in Israel and abroad. The company already operates several gas-fired plants and is selectively adding renewable assets, but sees modern combined-cycle units as a bridge technology while grids integrate more solar and wind.

In its latest investor communications, Kenon points to OPC as a key growth engine alongside its shipping investment in Zim, highlighting committed capital expenditures like Hadera as underpinnings for future cash flows. For Kenon shareholders, the expansion is less about individual megawatts and more about tangible, contracted infrastructure sitting on the balance sheet.

Project economics and risk profile

The Hadera Expansion Project involves a substantial upfront investment, with cost inflation in materials and skilled labor an ever-present risk for contractors and owners. However, the regulated capacity tariff framework dampens some of the revenue volatility, assuming OPC keeps the unit available and meets performance metrics set by the regulator.

Environmental scrutiny around gas-fired plants remains, even for high-efficiency combined-cycle technology. OPC must navigate emissions permitting, noise control, and local-community expectations, including visual impact and traffic during construction. The company has experience from its existing site operations, but an expansion always brings fresh rounds of consultation and oversight.

Kenon and the listed energy story

Kenon Holdings, headquartered in Singapore, acts chiefly as a holding company, with OPC Energy as one of its crown jewels alongside logistics and shipping interests. That means many investors watch OPC's project pipeline, including Hadera, as a proxy for Kenon's future dividends and asset value.

In sum, the Hadera Expansion Project is another step in Kenon's gradual build-out of long-life, cash-generating infrastructure via OPC, rather than a sudden strategic pivot or headline-grabbing megadeal. Kenon Holdings shares (ISIN SG1M69006093) trade in Singapore as a holding-company play on Israeli power generation and global shipping exposure.

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