#Japan #Geothermal Energy #Baseload Capital #Kumamoto #Furusato Thermal

Baseload Capital's Strategic Step Into Japanese Geothermal Energy

On September 2, 2025, Baseload Capital, a global player in geothermal development based in Stockholm, Sweden, unveiled its strategic investment in Furusato Thermal Power Co., Ltd., a Japanese company focusing on geothermal energy development and operations located in Kumamoto Prefecture. The CEO, Alexander Hellring, expressed the company's commitment to promoting the utilization of Japan's geothermal resources alongside Furusato Thermal Power to establish a sustainable energy development model applicable worldwide.

A Synergistic Partnership

This partnership is remarkable for its unique blend of Baseload Capital’s extensive global investment portfolio and Furusato Thermal Power's community-driven approach. Both companies aim to expand clean energy operations while nourishing local culture and livelihoods, thus fostering a cycle that breathes life into regional economies.

Baseload Capital brings a wealth of global support, including backing from prominent entities like Google and Breakthrough Energy Ventures, founded by Bill Gates. This infusion of capital comes with connections that extend to a global network, further bolstering Furusato Thermal’s local expertise in energy development.

Exploiting Japan's Geothermal Potential

Japan is endowed with an estimated 23GW of geothermal power potential, ranking third globally. However, it has only managed to harness a mere 0.576GW, representing about 2% of its capability. The Japanese government aims to ramp up geothermal capacity to 1.5GW by 2030, as per the 7th Strategic Energy Plan. This ambitious goal aligns with Japan's commitment to achieving net-zero emissions by 2050 through its Green Transformation (GX) strategy, highlighting a vast untapped resource in geothermal energy.

Geothermal energy, with its ability to provide stable power 24/7 and its small physical footprint, serves as an ideal energy source for Japan's mountainous regions and densely populated areas. With increasing energy demands from AI and data centers, enhancing geothermal energy production is crucial for Japan’s energy future.

Overcoming Cultural Barriers

One challenge that has historically hindered geothermal development in Japan is the nation's long-standing tradition of onsens (hot springs) and the lack of a cohesive coexistence model with local communities. Furusato Thermal Power and its partners aim to create a coexistence model that allows local communities to reap direct benefits from geothermal projects, thus addressing regional issues through shared resources.

The Innovative “Waita Model”

In 2011, residents of the Waita area in Kumamoto established the “Waita Cooperative” to help launch the Waita Geothermal Power Station. This collaboration with Furusato Thermal Power has enabled the promotion of regional development and the commencement of the first geothermal plant in the area.

The Waita Model emphasizes business practices rooted in respect and collaboration, ensuring a balanced development scale conducive to the local environment while reinvesting a portion of profits back into the community. This partnership showcases a cooperative rather than adversarial relationship, working together to resolve issues arising from geothermal energy operations.

A Growing Geothermal Portfolio

• - 2015: The Waita Geothermal Power Station starts commercial operations with a capacity of 2MW.
• - Future Plans: The upcoming Waita Number Two Geothermal Power Plant, projected to provide 5MW, is set to commence operations by March 2026.
• - Long-Term Vision: Over the next 5 to 10 years, the aim is to launch over 30MW of new projects across Japan using the community-driven geothermal development model.

Voices from the Leaders

Alexander Hellring of Baseload Capital remarked, “Furusato Thermal Power has proven the effectiveness of community-based geothermal development. I take great pride in this investment, as we aim to further develop this fantastic model of sustainable energy development in partnership with local communities.”

Kazuyuki Akaishi, CEO of Furusato Thermal Power, expressed the significance of their relationship with Baseload Capital, viewing them not just as investors but as long-term partners in transforming Japan's energy landscape through stability in project finances and access to cutting-edge technologies and global networks.

Karma Roberts from Breakthrough Energy Ventures noted the untapped potential of geothermal energy in contributing vastly to global clean energy transitions, emphasizing that Baseload Capital's collaboration with Furusato Thermal Power illustrates how locality can meet energy demands sustainably.

Future Aspirations

This partnership aspires to contribute significantly to Japan’s 7th Strategic Energy Plan and the GX initiative, ultimately establishing a sustainable energy development model rooted in local solidarity, which can be scaled globally. This initiative promises to create a tangible impact that resonates from local communities to the international front, redefining the narrative surrounding renewable energy in Japan and beyond.

About Baseload Capital

Baseload Capital leads partnerships aimed at expanding geothermal energy, a reliable source of clean power and heat available around the clock. They leverage strong alliances with investors to minimize risks in geothermal resource development while accelerating the market's growth.

About Furusato Thermal Power

Furusato Thermal Power prioritizes coexistence with local communities while striving for local development through a sustainable geothermal power model in Japan. Founded in 2012, the company has set a benchmark by launching its first operational plant in 2015 and is actively working on expansion across various regions in Japan, promoting community-friendly energy solutions.

Visit Furusato Thermal Power's Website