August 8 (Renewables Now) - Japanese financial services conglomerate Orix Corp (TYO:8591) said today it is set to begin construction of the 6.5-MW Minami-Kayabe binary cycle geothermal power plant in Hakodate City, Hokkaido.
Orix expects the facility to start commercial operations in the early spring of 2022. It lists Nippon Steel Engineering Co Ltd and Kinden Corporation as the construction companies for the project.
Upon completion, the plant will produce an estimated maximum of 56.94 GWh of electricity per year, which is equivalent to the annual power consumption of some 18,250 homes.
Orix noted it was chosen to get subsidies for geothermal power generation in the Minami-Kayabe region from Japan Oil, Gas, and Metals National Corporation (JOGMEC). It has also been conducting surveys for a publicly tendered geothermal power facility in Hachijojima that is planned to go online in 2022. At present, the company owns and operates a 1.9-MW geothermal plant on the site of the Beppu Suginoi Hotel in Beppu City, Oita Prefecture.
Meanwhile, Orix and Nevada-based Ormat Technologies Inc (NYSE:ORA) are holding talks about a geothermal business that will combine the two companies’ expertise and business foundations, mainly in Japan and Asia as a whole. Orix did not give further information about this plan.