Japan, the land of volcanoes, may finally be starting to unlock its huge geothermal energy potential.
Baseload Capital and Furusato Netsuden have completed the Waita No. 2 Geothermal Power Plant in Kumamoto Prefecture, a project they say could provide a model for wider geothermal growth across the country.
Japan has one of the world’s largest geothermal resources but the technology still provides less than 1% of its electricity. In fact it is home to 111 active volcanoes – 10% of all active volcanoes on Earth, so its potential for heat from underground is enormous.
That has long been seen as a missed opportunity, as it is ironically a country heavily dependent on imported fossil fuels and exposed to global energy price shocks.
The new 4.995MW plant began commercial operations in March and was developed with local stakeholders in the Waita district of Oguni Town.
The companies say the key is not just drilling into geothermal resources but building projects with local communities from the start.
Alexander Helling, CEO of Baseload Capital, said: “It demonstrates that geothermal development in Japan can be done in a way that creates trust locally, aligns incentives, and becomes repeatable.”
Kazuyuki Akaishi, Representative Director of Furusato Netsuden, said: “Japan does not lack geothermal resources.”
He added: “What has often been missing is a development model that communities feel part of.”
Baseload Capital said Japan could now become a major geothermal market if locally anchored projects can be replicated across the country.
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