July 30 (SeeNews) - The Japan Oil, Gas and Metals National Corp (JOGMEC) will provide 24.99% of the required financing for the exploration work as part of an up-to-7-MW geothermal project in Iwate prefecture in fiscal 2015.
Under the terms of the deal, JOGMEC may take as much as a 50% stake in the project, Japan’s Ministry of Economy, Trade and Industry (METI) said in a statement on Monday.
The funding will be given to Iwate Geothermal Power Co Ltd, which is the entity in charge of exploring and developing the resources in the Matsuo Hachimantai area. Previously, the firm has carried out a research project there.
JOGMEC falls under the jurisdiction of METI. Since September 2014, it has been supporting the domestic geothermal sector through research subsidies and a liability guarantee, yet the current contract marks its first direct investment in such a project, according to the press release.