In this interview, Dr. Amel Barich, Founder & CEO of Geoscience Research and Communications (GRC) , shares insights into the future of geothermal energy, covering superhot geothermal systems, advanced drilling, international collaboration, social license to operate, developing-country opportunities, and the growing role of geothermal in integrated energy systems. Image : Dr. Amel Barich Founder & CEO, Geoscience Research and Communications (GRC) Geoscientist | Geothermal R&D&I | Social License to Operate Q1. Could you briefly introduce yourself and describe your current role in advancing geothermal innovation? I am a geoscientist and geothermal professional with a background spanning geothermal research and innovation, international collaboration, policy and science diplomacy, stakeholder engagement, and strategic communication. Over the past decade, I have worked from Iceland across major European and international geothermal initiatives, leading collaborative R...
Furusato Neden and HEXA Energy Services Sign Strategic Agreement to Accelerate Geothermal Investment in Japan
Japan’s geothermal sector has taken an important step forward following the announcement that Furusato Neden Co., Ltd. and HEXA Energy Services GK have signed a Memorandum of Understanding to explore geothermal investment opportunities. The agreement, announced on 30 July 2026, signals growing confidence in geothermal energy as a long-term solution for Japan’s clean energy transition.
The collaboration is especially significant because it brings together two complementary strengths. Furusato Neden contributes geothermal development and operational experience, while HEXA Energy Services adds expertise in renewable energy finance, project development, power purchase agreements, asset management, and electricity aggregation. Together, the two companies are positioning themselves to evaluate existing and future geothermal opportunities in Kumamoto Prefecture and potentially beyond.
For Japan, this is more than a business arrangement. It reflects a broader shift toward cleaner, more resilient, and more strategically diversified energy systems. As the country continues to reduce dependence on imported fossil fuels, geothermal energy is gaining renewed attention as a stable and locally available renewable resource.
What the Memorandum of Understanding Covers
The Memorandum of Understanding does not represent an immediate investment decision. Instead, it establishes a framework for both companies to assess the commercial viability of geothermal assets before moving into more concrete investment discussions.
Under the agreement, HEXA Energy Services will evaluate opportunities related to geothermal projects currently operated and managed by Furusato Neden, as well as future developments under consideration. The companies will also undertake due diligence to better understand the technical, financial, operational, and regulatory conditions surrounding these assets.
This phased approach is common in geothermal development because the sector requires substantial upfront capital and careful resource assessment. Before any major investment is made, developers and investors must fully understand the geology, production history, project economics, environmental obligations, and long-term revenue potential.
Why This Partnership Matters
This agreement stands out because it connects project development expertise with investment capability. That combination is increasingly important in geothermal energy, where project success depends on both technical execution and financial structure.
Furusato Neden has built experience in geothermal development, ownership, and operations. HEXA Energy Services brings the commercial and financial tools needed to scale renewable energy projects through structured investment, long-term contracts, and asset management.
By working together, the two companies can evaluate whether existing geothermal projects in Kumamoto, or future developments in the region, can be expanded in a financially sustainable way. This kind of cooperation is exactly what Japan’s geothermal sector needs if it is to move from potential to large-scale deployment.
Who is Furusato Neden?
Furusato Neden is a Japanese geothermal developer focused on the development, ownership, and operation of geothermal power facilities. The company has built a reputation for promoting geothermal projects that are closely aligned with local communities and regional development goals.
Its work is primarily centered in Kumamoto Prefecture, one of Japan’s most geologically active regions. The company’s approach emphasizes responsible development, balancing clean energy generation with environmental stewardship and community engagement. That local-first philosophy is important in geothermal, where long-term project success often depends on public trust and good stakeholder relationships.
By focusing on projects that coexist with tourism, agriculture, and natural ecosystems, Furusato Neden is helping show that geothermal development can support both energy security and regional sustainability.
Understanding HEXA Energy Services
HEXA Energy Services GK plays a different but equally important role in this partnership. The company specializes in renewable energy project development, investment management, asset management, power purchase agreement structuring, and electricity aggregation.
These are critical capabilities in today’s renewable energy market. A project may have strong technical potential, but without effective financing and commercial structuring, it can struggle to move forward. HEXA’s expertise can help transform geothermal assets into bankable infrastructure investments with stable revenue models.
Its experience with PPAs is particularly valuable. Long-term power purchase agreements provide predictable income streams, which help make geothermal projects more attractive to investors. In a capital-intensive sector like geothermal, that kind of financial certainty can make a major difference.
Why Kumamoto Is Strategically Important
Kumamoto Prefecture is one of the most important regions for geothermal development in Japan. Located on Kyushu, an island known for its volcanic activity and geothermal potential, Kumamoto benefits from geological conditions that make it highly suitable for power generation from underground heat.
Kyushu already hosts several geothermal power stations, and the region has a strong base of technical knowledge and renewable energy infrastructure. That makes it an ideal location for new geothermal investment.
The economic importance of geothermal development in Kumamoto also extends beyond electricity production. Projects can create local employment, support engineering and construction services, generate tax revenue, and improve regional energy security. These wider economic benefits help build the case for continued geothermal expansion.
The Role of Due Diligence
One of the most important parts of the agreement is the focus on due diligence. In geothermal, careful evaluation is essential before committing capital because the sector involves higher resource uncertainty than many other forms of renewable energy.
Due diligence typically includes several layers of analysis:
- Geological assessment of the reservoir, temperature, permeability, and production potential.
- Technical review of plant performance, existing infrastructure, and operational history.
- Financial analysis of revenues, costs, return expectations, and project structure.
- Environmental review of reinjection systems, emissions, and sustainability practices.
- Regulatory review of permits, licenses, land access, and compliance obligations.
This process helps reduce risk and ensures that investors have a full understanding of the opportunity before making any commitment. For geothermal, that level of scrutiny is not optional; it is essential.
Combining Complementary Strengths
The partnership works because each company brings something different to the table.
Furusato Neden contributes:
- Geothermal resource knowledge.
- Project development experience.
- Plant operations capability.
- Local community relationships.
- Technical understanding of Japanese geothermal sites.
HEXA Energy Services contributes:
- Capital markets expertise.
- Renewable energy investment knowledge.
- Asset management capability.
- Electricity aggregation experience.
- Long-term project financing insight.
Together, these capabilities create a more complete platform for geothermal development. This kind of collaboration can help bridge the gap between technical potential and commercial reality.
Japan is one of the world’s most geothermally gifted countries. Its location along the Pacific Ring of Fire gives it abundant underground heat resources. Yet despite this natural advantage, geothermal remains underdeveloped compared with other renewable energy sources such as solar.
That gap exists for several reasons. Geothermal projects can face high upfront costs, complex permitting, drilling risks, and public acceptance challenges. In some areas, land-use restrictions and national park protections have also slowed development.
Even so, the long-term case for geothermal is strong. It provides reliable baseload electricity, very low emissions, a small land footprint, and long operating lifetimes. These qualities make it especially valuable in a country like Japan, which needs secure domestic energy sources.
Why Geothermal Fits Japan’s Energy Goals
Japan continues to seek ways to reduce dependence on imported fossil fuels while improving the stability and resilience of its energy system. Geothermal energy fits that strategy well because it is locally available, low-carbon, and capable of producing electricity around the clock.
Unlike intermittent renewables, geothermal does not depend on sunshine or wind conditions. That makes it especially useful in a power system that needs reliable baseload generation. It can also complement other renewables by helping balance the grid over time.
As Japan strengthens its renewable energy mix, geothermal can play a more significant role if the right investment structures and partnerships are in place. That is why the Furusato Neden and HEXA Energy Services agreement is so relevant.
The Growing Role of Private Investment
Another major theme behind this announcement is the rising importance of private capital in the renewable energy sector. Large geothermal projects require substantial funding for exploration, drilling, construction, and long-term operation.
Government support remains important, but private investment is increasingly needed to scale projects efficiently. That is where companies like HEXA Energy Services can make a major difference. Their financial expertise helps convert promising renewable energy assets into investable infrastructure opportunities.
This is especially important in geothermal, where project timelines can be long and risks can be difficult to quantify. Private-sector participation can help unlock projects that might otherwise remain undeveloped.
PPAs and Aggregation: Why They Matter
HEXA Energy Services also brings value through power purchase agreements and electricity aggregation. PPAs are especially important because they provide long-term revenue certainty. For geothermal investors, that predictability improves bankability and lowers perceived risk.
Electricity aggregation adds another layer of value by coordinating power sales across multiple assets and customers. As power markets become more decentralized, companies with aggregation expertise will play a larger role in making renewable projects commercially viable.
These commercial tools may not be as visible as turbines or wells, but they are just as important. Without them, many technically sound projects would struggle to attract investment.
Sustainability and Community Trust
Geothermal development cannot succeed on technology alone. It also depends on responsible environmental management and strong relationships with local communities.
The companies involved in this partnership have emphasized the importance of sustainable development. That includes protecting groundwater, maintaining environmental compliance, supporting local employment, and respecting tourism and cultural heritage. These are not peripheral issues; they are central to long-term geothermal success.
Community trust is especially important in Japan, where geothermal development often takes place near sensitive natural and cultural landscapes. Projects that engage transparently with local stakeholders are more likely to move forward successfully.
What This Means for Investors
The MoU does not guarantee immediate investment, but it does send a clear signal. Institutional confidence in geothermal energy is growing, and investors are increasingly looking at geothermal as a stable infrastructure asset with long-term earnings potential.
If the due diligence process identifies attractive opportunities, this partnership could lead to future investment in both existing and new geothermal projects. That would strengthen Japan’s geothermal pipeline and could encourage similar collaborations across the renewable energy sector.
For investors, the appeal is straightforward: geothermal offers reliable output, low emissions, and long asset lifetimes. When paired with the right commercial structure, it can become a highly attractive infrastructure class.
Broader Implications for Japan
The implications of this agreement go beyond one partnership. If successful, it could help reshape how geothermal development is financed and structured in Japan.
Potential outcomes include:
- More geothermal project investment.
- Better financing models for renewable infrastructure.
- Increased private-sector participation.
- Stronger PPA innovation.
- Expanded geothermal capacity.
- Greater regional economic development.
- Lower greenhouse gas emissions.
- Improved national energy security.
Each successful project can help build momentum for the next one. In that sense, this MoU could become a meaningful step in Japan’s broader renewable energy transition.
A Global Signal for Geothermal Markets
This development also fits into a larger global trend. Around the world, countries are reexamining geothermal as a serious clean energy option because of its ability to provide reliable power with very low emissions.
Markets such as the United States, Indonesia, Kenya, Iceland, New Zealand, the Philippines, Italy, and Türkiye continue to expand geothermal investment. Japan’s renewed focus on strategic partnerships shows that mature energy markets are also starting to move more aggressively.
The combination of technical expertise and financial innovation may become one of the defining features of the next wave of geothermal growth.
Looking Ahead
The next stage of this partnership will depend on how the due diligence process unfolds. If the evaluation is favorable, HEXA Energy Services could become a major investment partner for Furusato Neden’s existing projects and future geothermal developments.
For Japan, the agreement is another positive sign that private capital is aligning more closely with national clean energy goals. For the geothermal industry, it is a reminder that success requires not only good geology, but also strong financial structure, stakeholder trust, and long-term vision.
As the energy transition continues, partnerships like this may help unlock geothermal resources that have remained underused for decades.
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