New Global-Local Partnership Revolutionizes Japan's Geothermal Energy Landscape

In a historic collaboration, Swedish company Baseload Capital has forged a strategic investment alliance with Furusato Netsuden, a Japanese developer dedicated to utilizing the country's abundant geothermal energy resources. This partnership aims not only to harness Japan's untapped geothermal potential but also to create a replicable framework for sustainable energy development globally.

Unleashing Japan's Geothermal Potential

Japan stands as the third-largest country with geothermal potential, boasting an estimated capacity of 23 gigawatts (GW). However, the installed capacity remains significantly low at just 576 megawatts (MW). This discrepancy illustrates an immense opportunity for growth, especially as Japan's Green Transformation (GX) Strategy focuses on achieving net-zero emissions by 2050. Given its clean and reliable energy production, geothermal power is ideally suited for a country that heavily relies on energy imports and is facing increasing clean energy demands across various sectors, including burgeoning AI and data centers.

Filming on this initiative raises the question of why Japan's geothermal development has not progressed at a faster pace. One primary obstacle has been the absence of a unified business model that permits local communities to benefit directly from this renewable energy source. However, Furusato Netsuden and its regional counterparts are setting a precedent by creating a model that ensures community gains from geothermal energy.

The Innovative Waita Model

A prime example of this community-driven approach is the Waita model, established in 2011 in Oguni Town, Kumamoto Prefecture. Residents came together to form the limited liability company Waita-kai, partnering with Furusato Netsuden to develop geothermal energy sustainably, revitalizing their community in the process. The name 'Furusato Netsuden' translates to