JStories — Japan, one of many world’s most volcanically energetic international locations, has the world’s third-largest geothermal useful resource potential, estimated at 23 gigawatts, trailing solely america and Indonesia. That’s roughly equal to the output of 23 typical nuclear reactors, every producing about 1 gigawatt.
But Japan’s put in geothermal capability totals solely about 0.5 gigawatts — simply 2% of its potential. Lengthy growth timelines, land-use restrictions and the necessity to coordinate with native scorching spring operators have lengthy stood in the way in which.
Now, a brand new type of renewable power enterprise is taking root in Kyushu, aiming to place the area’s ample geothermal assets to work for the communities that sit above them.
The hassle facilities on the Waita scorching spring space, on the foot of Mount Waita, straddling the border of Kumamoto Prefecture’s Aso District and Oita Prefecture’s Kusu District. Furusato Netsuden, a geothermal developer primarily based in Oguni City, Kumamoto Prefecture, is pursuing a community-based mannequin of geothermal growth led by consultant director Kazuyuki Akaishi. Underneath the mannequin, residents themselves revenue from their native geothermal assets and use that earnings to deal with native challenges.
Different builders had beforehand tried to construct geothermal tasks within the space, however considerations amongst scorching spring landowners and residents concerning the potential depletion or cooling of their scorching spring sources made settlement tough. The discord break up the neighborhood — even resulting in the cancellation of the 700-year-old Takenoyu Bon Odori competition — and earlier tasks stalled.
Akaishi, who noticed main potential within the area’s ample geothermal assets, drew on his expertise managing bulk electrical energy contracts for condominium buildings to influence landowners who opposed the undertaking. He labored with them one after the other, progressively constructing consensus. A shared objective — making a city enticing sufficient that residents’ kids and grandchildren would wish to return — gave Akaishi and the neighborhood widespread floor.
In 2011, 30 households within the space fashioned a corporation referred to as Waita-kai, and the Waita No. 1 geothermal energy plant was launched. Furusato Netsuden helps the group with fundraising, asset administration and operations, and the plant’s fastened earnings is funneled again into the neighborhood to fund infrastructure enhancements, training and tourism growth.
Constructing on the success of Waita No. 1, the Waita No. 2 geothermal energy plant got here on-line in March 2026 with the goal of addressing challenges throughout Oguni City. The plant has an put in capability of about 4,995 kilowatts and generates roughly 35 million kilowatt-hours a yr, sufficient to provide about 8,950 households.
“Our enterprise isn’t merely about growing energy era.The objective is community-building,” Akaishi stated. His dedication to geothermal energy within the area is rooted in a formative expertise from the coal-mining area of his native Hokkaido.
“I grew up listening to tales from my grandparents’ era about how the city thrived on its coal mines — there have been even a movie show and a bowling alley, and the entire place was filled with power. There was a time when turning underground assets into cash introduced vitality to the area,” he stated. Drawing on that formative expertise, in addition to the success of the Oguni City undertaking, Akaishi is now additionally pursuing geothermal growth in Teshikaga, Hokkaido.
Nonetheless, geothermal growth faces ongoing challenges. Underneath Japan’s feed-in tariff system, the assured buy interval for geothermal energy is 15 years. “After that interval ends, the buyback value can drop sharply although there’s nonetheless loads of underground useful resource and gear capability left. Geothermal is social infrastructure. We want incentive constructions designed round undertaking lifespans of 30 to 35 years for a long-term, steady energy supply,” Akaishi stated.
In September 2025, Baseload Capital, a Sweden-based firm that develops geothermal tasks worldwide, introduced a strategic funding in Furusato Netsuden, citing the potential for geothermal useful resource growth in Japan. Baseload Capital’s shareholders embrace Breakthrough Vitality Ventures, based by Invoice Gates, and Google.
“Take Google for instance — information facilities utilizing AI want electrical energy across the clock,” Akaishi stated. “Because the world shifts towards greener information facilities, geothermal energy can generate electrical energy steadily day and evening, in contrast to photo voltaic or wind energy, that are affected by climate, season and time of day. Given its excessive capability utilization price, geothermal energy holds nice promise as a baseload energy supply.”
The Japanese authorities additionally views geothermal energy as an essential home baseload power supply. Final yr, the Ministry of Financial system, Commerce and Business introduced a plan to develop next-generation geothermal energy — which doesn’t require scorching spring areas — at 118 places nationwide by 2050, with the goal of increasing capability to 7.7 gigawatts, equal to about seven nuclear reactors.
“Folks say Japan lacks assets. However areas haven’t solely geothermal assets, but additionally forests and different assets. If firms respect and work alongside native communities, useful resource growth will speed up,” Akaishi stated.
“If we are able to construct larger recognition of the worth of geothermal energy’s steady provide and pursue insurance policies that enable geothermal growth to coexist with native communities, areas will begin to transfer. And as soon as areas begin to transfer, society will change. We goal for the day when what we’re doing turns into the worldwide customary,” he stated.
Translated by Mark Goldsmith
Edited by Mark Goldsmith
High photograph: Furusato Netsuden
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