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Agency for Natural Resources and EnergyJOGMEC Decided to Provide Liability Guarantees for Developing Geothermal Resources as a First Case for Geothermal Resource Development

The Japan Oil, Gas and Metals National Corporation (JOGMEC) decided to provide liability guarantees to two projects for power generation by geothermal resources at: [i] Tsuchiyu Onsen, Fukushima City, Fukushima Prefecture and [ii] Kokonoe Town, Kusu County, Oita Prefecture. These are the first geothermal resource development projects to which JOGMEC provides liability guarantee.

1. Outline of JOGMEC’s liability guarantee program

Under its program for providing liability guarantees, JOGMEC guarantees the loans that private companies that develop geothermal resources borrow from private financial institutions when those companies attempt to construct a geothermal power plant and that need to be financed from such institutions as a fund for the development. Under this program, JOGMEC provides a liability guarantee for up to 80% of the total loan.*

*Note: JOGMEC liability guarantee program
Aiming to assess the risk of geothermal resources development that is difficult to assess only by private financial institutions as well as to facilitate such institutions’ funding to private companies that intend to develop geothermal resources, JOGMEC guarantees the loans that the companies borrow from such institutes as the funds they need when they attempt to construct a geothermal power plant, up to 80% of the total fund (standard rates of liability guarantee: 0.4% per year).

2. Outline of the projects to which JOGMEC provides liability guarantee

Tsuchiyu Onsen Energy Corporation has decided to construct a geothermal power plant with a water-cooled binary system able to generate 400 kW of electricity at Tsuchiyu Onsen, Fukushima City, Fukushima Prefecture. The company has raised a part of the construction fund (557 million yen) from Fukushima Shinkin Bank as a long-term loan, and JOGMEC decided to guarantee 80% of the total loan.

NEECO Corporation has decided to build a geothermal power plant with an air-cooled binary system able to generate 5,000 kW of electricity at Kokonoe Town, Kusu County, Oita Prefecture.. The company has raised a part of the construction fund (4 billion yen) from Mizuho Bank, Ltd. and Nippon Life Insurance Company as a long-term loan, and JOGMEC decided to guarantee 80% of the total loan.

For details of these projects, see the Appendix (PDF:706KB) PDF File(in Japanese).

Release Date

March 27, 2014

Division in Charge

Fuel Policy Planning Office, Policy Planning Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy

Ministry of Economy, Trade and Industry
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