Furusato Thermoelectric

What Furusato Thermoelectric does

Furusato Thermoelectric (Furusato Netsuden Co., Ltd., ふるさと熱電) is a Japanese geothermal energy developer founded in July 2012 and headquartered in Oguni Town, Kumamoto Prefecture. The company designs, develops, and operates flash-type geothermal power plants drawing on high-temperature steam from reservoirs at depths of 1,000-3,000 meters, with two operational assets in the Waita district totaling approximately 7 MW of installed capacity (Waita No. 1 at 1,995 kW operational since May 2015, and Waita No. 2 at 4,995 kW commencing commercial operation in March 2026). Its differentiated "Waita Model" (わいたモデル) structures each project around a local-resident LLC—in the flagship case, Waita-kai LLC, comprising all 30 households of the Gakunoyu district—that co-invests in the plant and shares in revenue, addressing both the social license and the regional economic revitalization typically required to advance geothermal siting in Japan.

Furusato monetizes generation through three streams: long-term sales into Japan's Feed-in Tariff (FIT) regime, corporate Virtual Power Purchase Agreements (VPPAs) with environmental certificates attached, and reinvestment of a share of project revenue into regional revitalization activities. Confirmed enterprise offtake includes NTT West (a 4.99 MW VPPA supporting a 2040 carbon neutrality target) and Japan Semiconductor Corporation of the Toshiba Group (a 15-year VPPA for approximately 19.6 GWh annually, displacing up to 9,251 tons of CO2 per year). Beyond power, the company operates ancillary cascade uses of geothermal heat, including greenhouse agriculture producing basil and mint, the Yukemuri Workshop community food facility, and the Yakuba Mae Saita regional exchange hub.

As of early 2025, the company employed approximately 26 staff (up 11 year-over-year), including 14 in technical functions, with a senior engineering team covering reservoir management, drilling, and electrical chief engineering roles. In September 2025, Sweden's Baseload Capital took a strategic investment stake to scale the Waita Model nationally; the disclosed pipeline is 7 MW operating or under construction and 30+ MW planned over the next decade, against Japan's estimated 23 GW of geothermal potential of which only ~576 MW is currently installed. The company is privately held, headquartered in Oguni Town, and maintains satellite offices in Tokyo and within Oguni Town.

Name

Furusato Thermoelectric

Legal name

Furusato Netsuden Co., Ltd.

Website

https://furusato-nd.co.jp

Company type

Private

Founded year

2012

Operating status

Operating

Short description

Furusato Thermoelectric is a Japanese geothermal energy developer operating community-aligned power plants in Kumamoto Prefecture. Its proprietary Waita Model enables local residents to co-invest through an LLC, generating baseload renewable power sold via Japan's Feed-in Tariff and corporate VPPAs.

Ownership category

akta.pro rank

Product category

Geothermal Power Generation

NAICS

Geothermal Electric Power Generation (221116)

SIC

Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

Hydrothermal Flash Steam Geothermal Power Plants (EUACAHAA)

akta.pro secondary industry

Geothermal Power Plant Development & IPP (Permitting, Financing, Project Development) (EUAMAEAD)

Keywords

• Geothermal power generation
• Renewable energy development
• Baseload power supply
• Corporate virtual PPA
• Community energy projects

Headquarters

HQ city

Ogunimachi

HQ country

Japan

HQ region

Asia

Offices4 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Technology or R&D, Infrastructure, Operations, Personnel, Marketing or Sales

Revenue model

1. Feed-in Tariff (FIT) Power Sales: Long-term power sales under Japan's Feed-in Tariff制度, selling electricity generated from geothermal resources to the grid at government-mandated rates. The company operates geothermal plants selling power to utilities.
2. Virtual Power Purchase Agreement (VPPA): Corporate VPPA contracts where Furusato sells geothermal electricity along with environmental certificates (green power certificates, RECs) to large corporations seeking to meet carbon neutrality targets. Contracts typically run 15-20 years.
3. Regional Revitalization Revenue Sharing: Revenue sharing with local community LLCs (わいた会) where power sales profits are reinvested into regional development activities including local infrastructure, cultural preservation, and community businesses.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels4 records

Core offering

Furusato Thermoelectric develops, owns, and operates flash-type geothermal power plants in Kumamoto Prefecture, Japan. It generates baseload renewable electricity from underground steam resources and sells the output under Japan's Feed-in Tariff system and through long-term corporate Virtual Power Purchase Agreements (VPPAs) bundled with environmental certificates. The company also runs cascade heat-use businesses (greenhouse agriculture, food processing) and licenses its community-aligned Waita Model for regional revitalization partnerships.

Product overview

Furusato Thermoelectric (ふるさと熱電) is a geothermal power generation company operating in Kumamoto Prefecture, Japan. The company offers geothermal power generation services through its power plants (Waite No. 1 and No. 2 Geothermal Power Plants) using its proprietary community-aligned 'Waite Model.' In addition to core power generation, the company provides complementary services including greenhouse agriculture using residual geothermal heat and operates community facilities. The company partners with local residents through the Waite-kai LLC for its power plant operations and sells agricultural products and regional specialties derived from geothermal resources.

Differentiator

Problem solved

Functional benefit

Brands

• Waita Model (わいたモデル): A community-aligned geothermal development model developed by Furusato Netsuden in partnership with local residents, designed to share geothermal revenue with the community and contribute to regional revitalization.

Quantifiable outcome

• Approximately 14 million kWh annual generation from Waita No. 1, exceeding Oguni Town's ~3,100 households
• +2 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Four partnerships are on record, tiered core and minor.

• 合同会社わいた会 (Waita-kai LLC)coreStrategic or Co-development PartnerCommunity organization comprising all 30 households of the Waita Hot Spring district (岳の湯地区), established in 2011. Residents hold equity stakes in geothermal power projects and participate in revenue decisions. This partnership is the foundation of the Waita Model for community-aligned geothermal development.
• 有限会社はねの建設 (Hane Construction)minorStrategic or Co-development PartnerLocal construction company that handled renovation work for the power plant office and the '役場んまえ咲いた' regional exchange facility using traditional craftsmanship.
• たねもしかけも (Taneshimokake mo)minorStrategic or Co-development PartnerDesign firm that led renovation design for the '役場んまえ咲いた' regional exchange hub, previously involved in designing the 岳の湯大地獄 (local landmark).
• ASOおぐに観光協会 (ASO Oguni Tourism Association)minorStrategic or Co-development PartnerLocal tourism association in Oguni Town collaborating on regional revitalization initiatives including the '地域づくりインターンの会' internship program for university students.

Scale indicators8 records

Recent moves8 records

Expansion highlights6 records

Broad incumbents

• Oita Geothermal Holdings (Kyushu Electric Power geothermal operations): Kyushu Electric Power, the dominant regional utility serving Kumamoto Prefecture, operates the Hatchobaru and Otake geothermal power plants - some of the largest in Japan. A major incumbent that may partner or compete with Furusato-nd for regional grid interconnection.
• Japan Petroleum Exploration Co. (JAPEX): Major Japanese energy company with geothermal exploration and power generation operations. JAPEX operates geothermal assets through subsidiaries and competes for the same Japanese geothermal resource permits as Furusato-nd.
• Idemitsu Kosan Co. (Idemitsu Ouga Geothermal): Large Japanese energy conglomerate that operates geothermal power generation including Ouga Geothermal Power Plant in Akita Prefecture. A broad incumbent in Japanese geothermal IPP activity with similar baseload renewable focus.
• Mitsubishi Heavy Industries Geothermal: Major industrial conglomerate that designs and supplies geothermal turbines and power plant equipment globally. Comparable to Furusato-nd through the geothermal value chain and Japanese-JV geothermal project activity.
• Sumitomo Corporation (Renewable Energy Division): Japanese trading house with renewable energy project development including geothermal. Comparable as a large Japanese corporate developing geothermal and other renewable IPP assets domestically.

Emerging players

• Baseload Capital: Swedish geothermal-focused investment firm and strategic capital partner to Furusato Netsuden. While investor-financing rather than a pure operating peer, Baseload Capital's portfolio includes multiple geothermal developers worldwide, making it comparable on geothermal IPP activity.

Others

• Zorlu Energy / Ken Koga Geothermal operations: Independent power producers focused on geothermal development in Turkey and other markets. While geographically distinct, they are comparable emerging geothermal IPP specialists working with Baseload Capital and similar community/development capital structures.
• Star Energy Geothermal (Indonesia): Indonesian geothermal IPP with significant operating capacity. Comparable as a flash/dry-steam geothermal IPP focused on community development and baseload power, but operates in a regional market distinct from Japan.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Furusato Thermoelectric