Baseload Capital invests in Furusato to unlock Japan’s untapped geothermal potential

Swedish company Baseload Capital has announced a strategic investment in Japanese geothermal energy developer Furusato Netsuden. The partnership aims to unlock Japan’s untapped geothermal potential and build a replicable model for sustainable energy development worldwide.

Combining a global investment portfolio with a community-rooted business model, this strategic partnership aims to scale clean, renewable energy respectfully, revitalizing local economies while honoring cultural heritage. The investment is made through Baseload Furusato, a wholly owned subsidiary of Baseload Capital that is headquartered in Minato Ward, Tokyo.

Furusato Netsuden brings deep local roots, trust, and operational expertise to the partnership, while Baseload Capital contributes international investment, global reach, and the power of committed owners such as Google and Breakthrough Energy Ventures.

Japan’s untapped geothermal power

Japan has the third largest geothermal potential globally, with an estimated 23 GW, yet its current installed capacity is only 576 MW. This represents a major untapped opportunity for a country whose Green Transformation (GX) Strategy aims for net-zero emissions by 2050. Geothermal energy is clean, always-on, and space-efficient. That makes it an ideal solution for a mountainous, densely populated nation with high reliance on energy imports and growing clean-energy demand from AI and data centers.

Japan’s geothermal development has been slow, in part, because there’s no common business model that enables communities to share in the benefits. However, Furusato Netsuden and its local partners have developed a system to ensure communities benefit directly from geothermal energy.

The Waita model – a ground-breaking approach

In 2011, residents of the Waita area in Oguni Town, Kumamoto Prefecture, formed the limited liability company Waita-kai, which is owned by the community. In partnership with Furusato Netsuden, they set out to develop geothermal power together in a way that would revitalize the community. The name Furusato Netsuden combines the words for “hometown”, “heat” and “electricity”.

The “Waita model” is a model that positions geothermal energy as “local / regional heat,” rather than an “underground resource.” Thus, development is primarily led by the local communities rather than companies.  Even in geothermal development areas in New Zealand, there have been cases where methods that benefit local vested interests, such as Maori trusts, have been adopted, ultimately accelerating geothermal power generation development in the short term.

The same model is being applied for geothermal development ongoing in Oguni Town, Aso District, Kumamoto Prefecture, the Teshikaga area of Hokkaido, and other hot spring areas.

This model protects local land rights, ensures development is carried out on a scale appropriate for the area, and guarantees some of the revenues are re-invested in the community. Furusato Netsuden and Waita-kai regularly hold meetings with residents to share updates on operations, development, and environmental monitoring.

A growing geothermal portfolio

• In 2015, the 2 MW capacity Waita No. 1 geothermal power plant began commercial operation.
• Waita No. 2, currently under construction, is expected to deliver 5 MW and go online in March 2026.
• In addition to the 7 MW currently operating or under construction in Waita, the overall portfolio includes a tangible pipeline of projects across Japan that are expected to deliver an additional 30+ MW over the next five to ten years.

“Furusato Netsuden has successfully proven that community-based geothermal development works. Through this first investment, we’re proud and humbled to partner with them in scaling this approach, combining local engagement with sustainable energy development. Together, we aim to help Japan reach its 1.5 GW geothermal goal and strengthen national energy resilience,” said Alexander Helling, CEO of Baseload Capital.

“Since 2020, we’ve built a foundation of trust with Baseload Capital, and seen that they are a committed, long-term partner in Japan’s energy transition. Their role as a strategic investor provides financial stability for our current and future projects. They also bring valuable global resources, including technology, business insights and an international network of investors and energy partners,” added Kazuyuki Akaishi, Representative Director of Furusato Netsuden.

The goal of this partnership is to support Japan’s 7th Strategic Energy Plan and GX (Green Transformation) while establishing a scalable, community-focused blueprint for clean energy development – creating global impact with local roots.

Source: Baseload Capital and Furusato Netsuden via PRTimes