Japan Renews Focus on Geothermal Power Generation

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Several Japanese companies have announced plans to build geothermal plants for power generation, renewing interest in this clean energy source for the first time in more than two decades. Mitsubishi Materials Corporation (TYO:5711) (Kanagawa), Electric Power Development Company Limited (J-Power) (TYO:9513) (Tokyo), Nittetsu Mining Company Limited (TYO:1515) (Chiyoda) and Kyushu Electric Power Company (TYO:9508) (Fukuoka) are some of the companies that plan to tap into the geothermal activity by setting up plants across the country with financial assistance from the government.

Mitsubishi Materials and J-Power will jointly invest $433 million to build a geothermal power plant in Yuzawa in the Akita Prefecture in northern Japan. The plant will harness the energy from hot water and steam about 2,000 meters below the surface to produce 60 megawatts (MW) of electricity and is likely to begin commercial operations in 2016.

Mitsubishi Materials already has two geothermal plants -- one each in Sumikawa and Ohnuma -- with installed capacities of 50 MW and 9.5 MW, respectively. They generate about 350,000 megawatt-hours of clean energy annually. The Sumikawa plant supplies steam. Mitsubishi Materials is also conducting a feasibility study on geothermal power generation in the Appi area in Iwate prefecture. J-Power operates one geothermal plant at Onikobe with a capacity of 12.5 MW.

Japan has more than 108 volcanoes spread across the country constituting about 10% of the world's active volcanoes. The geothermal activity, comprising natural steam and hot water thousands of meters beneath the volcanoes, is a clean source of energy that goes untapped and can instead be used to power turbines. The country currently has 18 operational geothermal stations that produce more than 500 MW of electricity contributing to only around 0.2% of the energy mix. Most of the country's energy needs comes from combustible fuels followed by nuclear energy, hydroelectric power and finally renewable sources such as geothermal, wind and solar power.

Japan had initiated geothermal power generation in the early 1970s at the height of an oil crisis. Eventually, as oil prices stabilized and more nuclear power plants were built, the drive to tap geothermal energy lost steam. Geothermal plants emit far less carbon-dioxide emissions compared to hydrocarbon-based and nuclear power plants. Keen on reducing and tapping the domestic source of clean energy, the country is gearing for a second innings in geothermal power production. In a bid to reduce greenhouse gases, the country proposes to invest $4 billion and has been actively promoting solar energy, offering tax incentives to residents who put up solar panels for domestic use.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.