Commercialization of Geothermal and Small-Scale Geothermal Power Generation

「The geothermal power business is being promoted by アストマックスえびの地熱株式会社 in the Obaeno area of Ebino, Miyazaki Prefecture. The required generating capacity has been confirmed through the 4 wells drilled to date, and a grid interconnection agreement for total output of 4.4MW was completed in fiscal 2024.」

「With the aim of further strengthening the stability of the business foundation for the geothermal power business and improving its profitability, we have agreed with 株式会社竹中工務店 that it will subscribe for a third-party allotment of new shares in えびの地熱社. Going forward, we will review the business plan with 株式会社竹中工務店 over several months and discuss capital strengthening, fundraising and other matters.」

「As interconnection for the full 4.4MW, including the additional capacity, has now been confirmed, we will promptly proceed with preparations for regulatory approval procedures, construction contracts for the generating facilities and other matters. The planned start of operations is expected to be in fiscal 2027, one year later than originally scheduled, due to repeated regulatory changes and the prolonged lead times for construction contracts, as described above.」

「Meanwhile, although we are still proceeding with the relevant procedures to secure additional interconnection capacity associated with the project expansion, we are also considering a review of the plan, including an expansion of transmission capacity, in parallel, due to uncertainty over the timing of interconnection and higher construction costs resulting from rising prices and other factors.」

「For the 2MW covered by the original plan, we have entered into an agreement with Kyushu Electric Power Company,Incorporated to bear the construction costs required to connect the generating facilities and other equipment to the power grid, and operations are scheduled to begin in fiscal 2026. Meanwhile, although no spare capacity remained available for the interconnection capacity following the expansion of the project, we had applied for a connection agreement on the assumption that we would use non-firm connections to the local grid, for which applications opened on 1 April 2023. However, the distribution grid area was newly designated as an area subject to the collective study process. Going forward, we will continue working to secure grid access in accordance with the schedule for this process.」

「Meanwhile, although no spare capacity remained available for the interconnection capacity following the expansion of the project, we are working to secure grid access on the assumption that we will use non-firm connections to the local grid, for which applications opened on 1 April 2023.」

「For the originally planned 2 MW, we have entered into a construction cost contribution agreement with Kyushu Electric Power Company,Incorporated for connecting the generation facilities and other equipment to the power grid, and operations are scheduled to begin in FY2026. Meanwhile, no spare capacity has continued to be available under the current system for grid connection capacity after the expansion of the planned capacity. However, various discussions, including institutional changes, are under way regarding the use of the grid, such as the scheduled start on 1 April 2023 of accepting non-firm connections on local grids. We will continue working to secure grid capacity while monitoring future developments.」

「Regarding grid connection capacity after the expansion of the planned capacity, the bundled review process for power-source connection projects concluded in December 2021 without being established.」

「Subsequently, Ebino Geothermal also confirmed self-flow from the fourth test well drilled under the FY2019 subsidy program. Based on the survey results to date, we expanded the planned capacity to 4.8 MW and proceeded with studies for construction of the power plant. In line with the construction period under the construction cost contribution agreement already executed, operations are currently scheduled to begin in FY2026.」

「Subsequently, Ebino Geothermal also confirmed self-flow from the fourth test well drilled under the FY2019 subsidy program. Based on the survey results to date, we expanded the planned capacity to 4.8 MW and proceeded with studies for construction of the power plant. … In March 2021, JFE Engineering Corporation and Ebino Geothermal entered into a silent partnership agreement to distribute 10% of business profit and received the first silent partnership investment.」

「At Ebino Geothermal, self-flow from the fourth test well drilled under the FY2019 subsidy program has been confirmed. Following a comprehensive analysis of the survey results to date, we determined that sufficient resources for commercialization had been secured. Based on the results of the temporary steam-flow test at the fourth test well, we will proceed with studies for construction of the power plant on the assumption that the planned capacity will be expanded to 4.8 MW. We will continue working toward commercialization, including coordination to secure additional grid capacity. In line with the construction period under the construction cost contribution agreement already executed, operations are currently expected to begin in FY2026.」

「Construction of the fourth test well began in July 2019 and was still under way as of the end of December.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, following our selection for the Japan Oil, Gas and Metals National Corporation’s Geothermal Resource Development Survey Subsidy Program, we completed drilling the first test well in March 2017, the second in December 2017 and the third in September 2018, with the aim of commercializing a geothermal power generation project with a capacity of 2 MW. Construction of the fourth test well began in July 2019.」

「Construction of the fourth test well began in July 2019.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, … drilling of the third test well was completed in September 2018. … The third test well was originally intended to investigate the reinjection zone for geothermal resources, but based on the drilling results, its purpose was changed to investigating the production zone. A temporary steam-flow test was conducted, and self-flow was confirmed in January 2019. We will continue working toward commercialization while considering development of more than 2 MW.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, we were selected for the Japan Oil, Gas and Metals National Corporation’s Geothermal Resource Development Survey Subsidy Program and, with the aim of commercializing a geothermal power generation project with a capacity of approximately 2 MW, completed drilling the first test well in March 2017, the second in December 2017, and the third in September 2018. For the temporary steam-flow tests to confirm generation capacity, we confirmed self-flow from the first test well in February 2018 and the presence of high-temperature hot water at the second well in May 2018. The third test well was originally intended to investigate the reinjection zone for geothermal resources, but based on the drilling results, its purpose was changed to investigating the production zone. A temporary steam-flow test was then conducted, and self-flow was confirmed in January 2019.」

「As part of the FY2018 survey program, drilling of the third test well (reinjection well) has been completed, and we will continue working toward commercialization while considering development of more than 2 MW.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, we were selected for the Japan Oil, Gas and Metals National Corporation’s Geothermal Resource Development Survey Subsidy Program and, with the aim of commercializing a geothermal power generation project with a capacity of approximately 2 MW, completed drilling the first test well in March 2017 and the second test well in December 2017. For the temporary steam-flow tests to confirm generation capacity, we confirmed self-flow from the first test well in February 2018 and the presence of high-temperature hot water at the second well in May 2018. We have also begun drilling the third test well (reinjection well) as part of the FY2018 survey program and will continue working toward commercialization while considering development of more than 2 MW.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, with the aim of commercializing a geothermal power generation project with a capacity of approximately 2 MW, we had completed drilling the first test well by the end of the previous consolidated fiscal year and completed drilling the second test well in December 2017.」

「On 13 June 2017, we were selected for the Japan Oil, Gas and Metals National Corporation’s FY2017 subsidy program for surveys to assess geothermal resources and began drilling a second test well. We will conduct a steam-flow test on the first well during the current fiscal year.」

「Following our selection on 27 July 2016 for the Japan Oil, Gas and Metals National Corporation’s FY2016 Geothermal Resource Development Survey Subsidy Program, drilling of the test well was completed by the end of March 2017.」

「Following our selection on 27 July 2016 for the Japan Oil, Gas and Metals National Corporation’s FY2016 Geothermal Resource Development Survey Subsidy Program, we continued drilling a test well through the end of March 2017, and confirmed downhole temperatures corresponding to the drilling depth.」

「For the geothermal power generation business, in the Obaeno area of Ebino, Miyazaki Prefecture, we had been preparing to drill an exploratory well aimed at commercializing a geothermal power generation project with a capacity of approximately 2 MW while seeking the understanding of local residents. Following our selection on 27 July 2016 for the Japan Oil, Gas and Metals National Corporation’s FY2016 Geothermal Resource Development Survey Subsidy Program, we proceeded with drilling a test well and commenced construction.」

「For the geothermal power generation business, in the Obaeno area of Ebino, Miyazaki Prefecture, we were preparing to drill an exploratory well aimed at commercializing a geothermal power generation project with a capacity of approximately 2 MW while seeking the understanding of local residents, and planned to drill it during the current fiscal year. In addition, we are working to commercialize small-scale geothermal power generation, known as binary-cycle power generation, with a capacity of 100 to 300 kW. In Hita, Oita Prefecture, where a surface survey was completed in May 2016, we also aim to begin drilling during the current fiscal year.」

「In the Obaeno area of Ebino, Miyazaki Prefecture, we are proceeding with preparations to drill an exploratory well with a capacity of approximately 2 MW while seeking the understanding of local residents, and plan to drill it next fiscal year. In addition, we are working to commercialize small-scale geothermal power generation, known as binary-cycle power generation, with a capacity of 100 to 300 kW, and are conducting surface surveys in Hita, Oita Prefecture.」