Japan, with active volcanoes scattered around the country, is well-placed to tap geothermal energy as a power source and the attraction of a domestic source of energy is also fuelling the drive.
Mitsubishi Materials Corporation and J-Power plan to invest around CNY40 billion ($433.9 million) and build a geothermal power plant in Yuzawa in Akita Prefecture, northern Japan.
By tapping hot water and steam around 2,000 meters below the surface, this facility is expected to generate up to 60,000 kW of power and is scheduled to begin operating as early as 2016.
Mitsubishi Materials Corporation already owns two geothermal power stations and J-Power owns one.
The Ministry of Economy, Trade and Industry has planned to set up a study group of industry experts and academics, to compile by April 2009 steps to support geothermal power stations, including providing financial assistance for initial investments.
A host of projects to develop geothermal power plants kicked off in the 1970s, triggered by the first oil crisis, but as more nuclear power stations were built and fossil fuel prices eased back, the momentum had been lost.
Presently, Japan has 18 geothermal power stations in operation, but their aggregate output of slightly more than 500,000 kW accounts for only around 0.2% of electricity generated within Japan.
