Baseload Capital and Furusato Netsuden demonstrate scalable geothermal growth model in Japan

Japan holds one of the world's largest geothermal resources. Yet, despite decades of discussion around energy security and decarbonisation, geothermal today accounts for less than 1% of the country's electricity mix.

For Baseload Capital and Furusato Netsuden, the completion of Waita No. 2 marks more than an operational milestone; it signals what the companies believe could become a turning point for geothermal development in Japan.

The 4.995 MW plant began commercial operations in March 2026 and was developed together with stakeholders in the Waita district of Oguni Town, Kumamoto Prefecture. From the beginning, the project was built around close collaboration with the local community and long-term coexistence with local industries and traditions.

That approach matters in Japan, where geothermal development has historically faced barriers related to land use, regulation, and local acceptance. Baseload Capital and Furusato Netsuden believe future growth will depend not only on access to geothermal resources, but on development models capable of building long-term local trust and participation.

“Waita No. 2 is important not only because we commissioned a geothermal power plant,” said Alexander Helling, CEO of Baseload Capital. “It is important be-cause it demonstrates that geothermal development in Japan can be done in a way that creates trust locally, aligns incentives, and becomes repeatable. That changes the conversation from one isolated project to long-term market potential.”

Japan imports the vast majority of its energy, most of which is fossil fuels, leaving the country exposed to global fuel price volatility and energy security risks. At the same time, the country possesses geothermal resources capable of supporting stable domestic renewable energy generation for decades.

The Waita No. 2 project was developed in collaboration with Waita-kai LLC, an organisation representing residents in the area and participating in the project structure. The model is designed to ensure that value creation from geothermal development is more closely connected to the local community.

“Japan does not lack geothermal resources,” said Kazuyuki Akaishi, Repre-sentative Director of Furusato Netsuden. “What has often been missing is a development model that communities feel part of. Waita No. 2 shows that geothermal can be developed together with local communities, not around them.”

The project also reflects Baseload Capital's broader strategy in Japan following its partnership with Furusato Netsuden in 2025. Rather than focusing only on individual projects, the ambition is to help establish a long-term platform for geothermal growth in Japan.

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