You'll need to provide the context of your STP execution environment to get a more detailed answer. Enterprise Guide, Stored Process Web App, AMO?
In any case I'd suggest you run the following code as a stored process in the same execution environment:
proc options option=jreoptions; run;
It may be that the user that your STP is executing under can not find the specified Java path, that your STP server is misconfigured, or that the version of java is wrong. I just googled your error and the same solution is an answer on this forum from a couple of months ago.
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