Swedish investment firm Baseload Capital has announced a major stake in Japanese geothermal developer Furusato Netsuden, aiming to unlock Japan’s vast untapped geothermal energy potential with a model rooted in local communities.
Japan ranks third in the world for geothermal potential but has only installed 576MW out of a possible 23GW.
Furusato Netsuden, founded in partnership with local residents in Kumamoto Prefecture, has pioneered a model that ensures geothermal projects benefit the community directly—by respecting land rights, sharing revenues, and scaling projects appropriately.
Baseload Capital’s involvement brings global backing from investors like Google and Breakthrough Energy Ventures.
The company’s CEO, Alexander Helling, said: “Furusato Netsuden has successfully proven that community-based geothermal development works.”
The partnership centres on the “Waita model”, where residents formed a community-owned company called Waita-kai.
Together, they developed the 2MW Waita No.1 geothermal plant in 2015, with a second 5MW plant due to start operating in 2026. A further 30MW is planned across other sites in the next decade.
Kazuyuki Akaishi of Furusato Netsuden said: “Baseload Capital has been a committed, long-term partner in Japan’s energy transition. This investment gives us the financial stability to scale up.”
The alliance supports Japan’s 7th Strategic Energy Plan and Green Transformation (GX) goal to increase geothermal to 1.5GW, while reducing energy imports and revitalising rural communities.
Geothermal deal aims to transform Japan’s energy future appeared first on Energy Live News.