Orix prepares to add 4 MW of geothermal capacity in Japan

Jul 23, 2014 - Japanese financial services conglomerate Orix Corp (TYO:8591) said today it is studying the possibility of installing two 2-MW geothermal power plants in the Hokkaido and Aomori prefectures of Japan.

The company has initiated a commercial feasibility study on potential geothermal power generation at both sites. In Hokkaido, Orix will carry out an initial-stage survey in Hakodate city until October 2014 to study the existence of such resources at the site.

As per the second project in Shimokita county, Aomori, it is already in the second phase of the survey process, investigating the depth and location of potential underground geothermal resources. This study is expected to be completed by February 2015. The preliminary survey for the Aomori scheme was conducted between November 2013 and February 2014.

Earlier today, the Nikkei reported that Orix intends to construct up to 15 geothermal facilities in the next five years, each with a capacity of about 2 MW, for a total cost of JPY 25 billion (USD 246.7m/EUR 183.2m).

Orix is making use of the Geothermal Resource Survey subsidy sponsored by independent administrative agency Japan Oil, Gas and Metals National Corp (JOGMEC). The Japanese conglomerate already owns and operates a 1.9-MW geothermal plant in Oita prefecture. It is also engaged in the solar, biomass and other renewable energy segments.

(JPY 100 = USD 0.986/EUR 0.733)

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