Japan to Guarantee Debt for Two Geothermal Projects, METI Says

Mar 27, 2014 3:55 am ET

March 27 (Bloomberg) -- Japan’s government will guarantee debt to build geothermal power stations to attract investment by private financial institutions, the Ministry of Economy, Trade and Industry said.

State-run Japan Oil, Gas & Metals National Corp. will for the first time offer the guarantee for a 5 megawatt project planned by a unit of Kyushu Electric Power Co. in the southwestern prefecture of Oita, the ministry said in a statement.

JOGMEC will also guarantee debt for a 400 kilowatt station in Fukushima in northeastern Japan, according to the ministry.

The move is to encourage financing from institutions that are unfamiliar with geothermal projects, said Hidefumi Nakashima, a JOGMEC official after a press conference in Tokyo today.