The newly started Heat Power operator will be jointly owned by a number of Japanese stakeholders and Baseload Capital Sweden.
“The energy situation in Japan represents a unique possibility for Climeon and we are incredibly pleased with this first step into the Japanese geothermal heat power market,” said Thomas Öström, CEO of Climeon.
“Our technology is a perfect fit, the availability of hot water is great, and the electricity prices are high. This enables us to contribute to increasing the sustainable electricity production with good profitability and at low risk,” continued Öström.
The modules are to be delivered during 2019 and are expected to be put into operation the same year. Climeon's role in the project is as a supplier, but the company also owns 20 percent of Baseload Capital Sweden, which was formed to finance investments in geothermal heat power.
Since Fukushima nuclear power plant accident, Japan's domestic energy production has decreased significantly, which is why more than 90 percent of all primary energy is imported. Most of this is fossil. To accelerate the shift towards local green electricity, the Japanese government has introduced economic incentives and simplified the requirements for permits and surveys.
Japan is located in one of the world's most active volcanic areas and has many hot springs around the country, from which geothermal heat power can be extracted. Today, only just over 2 percent of its known geothermal energy resources are utilized.