Baseload Capital and Furusato Netsuden have completed the 4.995MW Waita No. 2 Geothermal Power Plant in Kumamoto Prefecture, marking a significant step in advancing geothermal energy development in Japan.

The facility began commercial operations in March 2026 and is being positioned by the companies as a model for scaling geothermal projects through close collaboration with local communities.

Despite possessing one of the world’s largest geothermal resources, Japan currently generates less than 1 per cent of its electricity from geothermal energy.

The companies believe the Waita No. 2 project demonstrates how community-focused development can help overcome long-standing challenges related to regulation, land use and local acceptance.

Developed in partnership with Waita-kai, which represents local residents and participates in the project structure, the plant aims to ensure that the economic benefits of geothermal development are shared with the surrounding community.

“Waita No. 2 is important not only because we commissioned a geothermal power plant,” said Alexander Helling, CEO of Baseload Capital. “It is important because 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 remains heavily dependent on imported fossil fuels, exposing the country to energy security and price volatility risks.

Baseload Capital views geothermal energy as a reliable domestic renewable resource capable of supporting long-term energy independence.

“Japan does not lack geothermal resources,” said Kazuyuki Akaishi, Representative 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 aligns with Baseload Capital’s broader strategy following its 2025 partnership with Furusato Netsuden to establish a long-term platform for geothermal growth across Japan.

As demand for reliable clean energy increases globally, the companies see Japan as a key market for locally anchored geothermal projects that can be replicated nationwide. -OGN/TradeArabia News Service