Baseload Capital and Furusato Netsuden have formed a strategic partnership to develop Japan‘s geothermal energy resources. The collaboration combines Baseload Capital‘s international investment expertise and global network with Furusato Netsuden‘s local knowledge and operational experience. The partnership aims to build a replicable model for sustainable energy development worldwide.
Japan possesses significant untapped geothermal potential, estimated at 23 gigawatts, but currently utilizes only a small fraction. This presents a substantial opportunity, particularly given Japan‘s commitment to net-zero emissions by 2050 under its Green Transformation (GX) Strategy. Geothermal energy offers a clean, reliable, and space-efficient solution to meet Japan‘s growing energy demands.
Historically, the lack of a community-beneficial business model has hindered geothermal development in Japan. However, Furusato Netsuden has pioneered a different approach. Its model, initially implemented in the Waita area, ensures local communities directly benefit from geothermal energy projects.
The Waita model, established in 2011, involves community ownership and participation in project development and profits. This approach prioritizes local land rights, ensures environmentally responsible development, and reinvests project revenues back into the community. Furusato Netsuden maintains regular communication with residents, providing updates on project progress and environmental monitoring.
The success of the Waita model is evident in the 2 MW Waita No. 1 power plant, operational since 2015, and the upcoming 5 MW Waita No. 2 plant, scheduled for completion in March 2026. Furusato Netsuden‘s portfolio also includes additional projects expected to generate over 30 MW in the next five to ten years.
Baseload Capital‘s CEO, Alexander Helling, expressed confidence in Furusato Netsuden‘s community-based approach and the potential for scaling this model. He highlighted the partnership’s goal of contributing to Japan‘s geothermal energy targets and strengthening the nation’s energy security.
Kazuyuki Akaishi, Representative Director of Furusato Netsuden, emphasized the long-term commitment of Baseload Capital and the value of its global resources, including technological expertise and investment networks.
Carmichael Roberts of Breakthrough Energy Ventures, an investor in Baseload Capital, also praised the partnership, emphasizing geothermal energy’s global potential and the importance of community-centric development models.
This collaboration aims to support Japan‘s energy goals while establishing a globally applicable model for community-focused clean energy development. Baseload Capital‘s investment underscores the growing recognition of geothermal energy’s potential and the importance of collaborative approaches to sustainable energy development.
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