Swedish company Baseload Capital has announced a strategic investment in Japanese geothermal energy developer Furusato Netsuden.
The partnership aims to unlock Japan’s untapped geothermal potential and build a replicable model for sustainable energy development worldwide.
Combining a global investment portfolio with a community-rooted business model, the partnership aims to scale clean, renewable energy, “revitalising local economies while honouring cultural heritage,” a statement by Baseload Capital noted.
“Furusato Netsuden has successfully proven that community-based geothermal development works,” said Alexander Helling, CEO, Baseload Capital.
“Through this first investment, we’re proud and humbled to partner with them in scaling this approach, combining local engagement with sustainable energy development. Together, we aim to help Japan reach its 1.5 GW geothermal goal and strengthen national energy resilience.”
Furusato Netsuden brings deep local roots and operational expertise to the partnership, while Baseload Capital contributes international investment, global reach and the power of committed owners such as Google and Breakthrough Energy Ventures.
Japan has the third largest geothermal potential globally, with an estimated 23 GW, yet its current installed capacity is only 576 MW.
“This represents a major untapped opportunity for a country whose Green Transformation (GX) Strategy aims for net-zero emissions by 2050.,” the statement added.
“Geothermal energy is clean, always-on, and space-efficient. That makes it an ideal solution for a mountainous, densely populated nation with high reliance on energy imports and growing clean-energy demand from AI and data centres.”
The country’s geothermal development has been slow, in part, because there is no common business model that enables communities to share in the benefits, the statement noted.
“However, 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 revitalise the community. The name Furusato Netsuden combines the words for “hometown”, “heat” and “electricity”.
This model protects local land rights, ensures development is carried out on a scale appropriate for the area, and guarantees some of the revenues are re-invested in the community. Furusato Netsuden and Waita-kai regularly hold meetings with residents to share updates on operations, development, and environmental monitoring.In 2015, the 2MW capacity Waita No. 1 geothermal power plant began commercial operation.
Waita No. 2, currently under construction, is expected to deliver 5MW and go online in March 2026.
In addition to the 7MW currently operating or under construction in Waita, the overall portfolio includes a tangible pipeline of projects across Japan that are expected to deliver an additional 30-plus megawatts over the next five to ten years.
“Since 2020, we’ve built a foundation of trust with Baseload Capital, and seen that they are a committed, long-term partner in Japan’s energy transition,” said Kazuyuki Akaishi, Representative Director, Furusato Netsuden.
“Their role as a strategic investor provides financial stability for our current and future projects. They also bring valuable global resources, including technology, business insights and an international network of investors and energy partners.”