Key facts
- Mitsui Fudosan aims to deploy Japan's first commercial next-generation geothermal system.
- The technology, Enhanced Geothermal Systems (EGS), can operate in areas not suitable for conventional geothermal power.
- Mitsui Fudosan is partnering with US-based Fervo Energy, a leader in EGS technology.
- Fervo Energy's EGS technology uses horizontal drilling and hydraulic fracturing to create underground heat extraction systems.
- Fervo Energy's demonstration plant in Nevada supplies clean power to Google's data centers.
- Fervo Energy plans to launch a 100MW commercial plant in Utah in 2026, with expansion to 500MW.
Mitsui Fudosan is pursuing the development of Japan's first commercial next-generation geothermal power site, a move that could unlock energy resources in areas previously unsuitable for conventional geothermal projects. The property developer is collaborating with U.S.-based Fervo Energy, a company specializing in Enhanced Geothermal Systems (EGS).
EGS technology involves creating artificial fractures in underground hot rock formations to circulate water and extract heat for power generation. This approach bypasses the need for naturally occurring permeable rock, potentially expanding the geographical scope of geothermal energy development. Fervo Energy has already demonstrated this technology by supplying clean electricity to Google's data centers from its facility in Nevada.
Mitsui Fudosan's investment in Fervo Energy, reported to be in the hundreds of millions of yen, aims to secure a stable supply of clean energy, particularly for the burgeoning AI data center market, which faces rapidly increasing power demands. The company seeks to establish a system for designing stable, clean power sources for AI data centers.
Japan possesses significant geothermal potential, with estimates suggesting next-generation systems could unlock approximately 77 GW of resources. The government is actively supporting the early implementation of this technology, with a goal of practical application in the 2030s. However, challenges remain, including potential seismic risks and the need for careful community engagement.
Other major Japanese companies are also investing in next-generation geothermal technologies. Mitsubishi Corporation has invested in Quaise Energy for deep geothermal access, while Mitsubishi Heavy Industries has partnered with Fervo Energy to integrate its turbine technology.