Baseload Capital taps into Japan’s geothermal energy potential

This will inject capital into Tokyo, which is amongst the countries with the largest geothermal potential.

Swedish company Baseload Capital today has entered into a strategic investment with geothermal energy developer Furusato Netsuden to fuel Japan’s untapped geothermal potential.

“Combining a global investment portfolio with a community-rooted business model, this strategic partnership aims to scale clean, renewable energy respectfully, revitalising local economies whilst honouring cultural heritage,” Baseload Capital said in a statement.

Japan has the third-largest geothermal potential globally, with an estimated 23 gigawatts (GW), yet its current installed capacity is only 576 megawatts.

Whilst the country’s geothermal development has been slow, Furusato Netsuden and its local partners have developed a system to ensure communities benefit directly from geothermal energy.

In 2011, residents of the Waita area in Oguni Town, Kumamoto Prefecture, formed the limited liability company Waita-kai, which is owned by the community. In partnership with Furusato Netsuden, they set out to develop geothermal power together in a way that would revitalize the community.

“Furusato Netsuden has successfully proven that community-based geothermal development works. Through this first investment, we’re proud and humbled to partner with them in scaling this approach, combining local engagement with sustainable energy development,” said Alexander Helling, CEO of Baseload Capital.

“Together, we aim to help Japan reach its 1.5 GW geothermal goal and strengthen national energy resilience,” he added.