JFE Engineering plans geothermal business expansion beyond Japan
Japanese engineering group JFE Engineering has announced plans to expand its geothermal business offering beyond Japan.
Japanese JFE Enginering is expanding its engineering business from planning to operation. The company built the Hachimantai geothermal power plant in Matsuo-Hachimantai, Iwate Prefecture, which started commercial operations in January 2019.
This was the first time JFE Engineering has participated in a project from the survey stage, and remains responsible for the construction of the entire set of ground facilities including steam production facilities and power generation facilities, while engaging in operations management as an investor. The generated electricity is supplied to local customers via Urban Energy Corporation, a new electric power company wholly owned by JFE Engineering. The company aims to expand its stable source of earnings by proposing integrated services that cover business planning to management.
JFE Engineering participated in the development and construction of the plant, also as an investment company.
JFE Engineering provides a high-efficiency geothermal power generation system consisting of production and well-managed facilities, steam production, facility, steam gathering pipeline, brine gathering pipeline, re-injection facility, and binary power generation facility capable of utilizing both steam and hot water.
With the plant output of 7,499 kW, the Hachimantai geothermal plant is the largest geothermal plant built in Japan in 22 years. With the offering the company hopes to expand its business to other countries, eyeing e.g. Indonesia.