The decision to enter the Japanese market was fueled by strategic partnerships, notably with Chubu Electric Power Company, a prominent utility player in Japan. Through direct investments and collaborative ventures in Geretsried, Chubu Electric has not only provided financial support but also bolstered Eavor’s credibility within the Japanese energy sector.
The article delves into how Eavor-Loop™ technology works, primarily how it extracts energy from hot rock via conduction. Eavor achieves this by introducing a working fluid into its closed-loop system, then utilizes the natural pressure difference between hot and cold, called the thermosiphon effect, to allow the fluid to circulate itself. This brings heat to the surface, which can be converted to electricity or used for district-heating without a parasitic pump load.
Chubu Electric’s involvement has been pivotal to Eavor’s growth, according to Heatherington, stating that it brings invaluable expertise and validation to Eavor’s initiatives. This journey of growth in the country underscores Eavor’s ambitions to assist Japan in achieving their climate targets, including a 46 percent reduction in greenhouse gas emissions by 2030 and achieving carbon neutrality by 2050. Heatherington also highlights Japan’s immense potential for Eavor’s growth in its energy market, citing demand, supportive policies, and favorable geothermal conditions.
However, regulatory challenges within the country remain. Heatherington explains that while licensing for drilling exist for the oil and gas sector and mineral resources in Japan, geothermal ventures are still regulated by “onsen law.” He explains that this absence of specific legislation governing geothermal resource development drives the need for regulatory clarity and community engagement.
Addressing supply chain issues, such as workforce shortages and equipment availability, is also critical for Eavor’s success in Japan. Heatherington underscores the importance of domestic training initiatives and international collaboration to overcome these challenges and accelerate project implementation.
Despite these obstacles, Eavor remains committed to building trust and fostering local support through transparent communication and emphasizing the benefits of its projects.
“If you spend time on the ground talking to people, you can explain the benefits we bring not only in terms of clean, green energy, but additional jobs and other positive impacts on the community. With proper engagement, you will get buy-in—which is paramount,” said Heatherington to JETRO.
Geothermal could be a key asset in Japan’s Green Growth Strategy, which positions renewable energy as a part of a “virtuous cycle of environmental responsibility and economic growth.” Eavor’s innovative approach not only supports this agenda but also signifies a broader shift towards clean, renewable solutions on a global scale.
“If we’re successful, it could change the energy world in Japan, Europe and across the globe.”