Japanese engineering company Chiyoda Corporation has reportedly signed a memorandum of understanding (MOU) with US-based Sage Geosystems for a joint technical and commercial feasibility study on next-generation geothermal power technology. The collaboration has been selected for support under the Tokyo Metropolitan Government’s global innovation program “TIB CATAPULT,” operated by Plug and Play Japan.
The MOU covers a joint feasibility study of the surface high-pressure equipment used in Sage Geosystems’ proprietary Enhanced Geothermal Systems (EGS) technology. EGS involves injecting water into underground reservoirs and recovering high-temperature, high-pressure fluid for power generation, and is also said to be compatible with long-duration energy storage. Chiyoda’s role is to evaluate key equipment configuration, power and energy balance, and rough estimates of capital cost, operating cost, and levelized cost of electricity, based on wellhead pressure, temperature, and fluid characteristics.
This announcement covers the feasibility study stage; specific generation capacity (MW) or investment amounts have not been disclosed. The MOU was reportedly signed on August 26, 2026.
The Tokyo Metropolitan Government has been supporting the commercialization of new renewable energy technologies in line with its “Zero Emission Tokyo Strategy,” and this collaboration is reported to be part of that effort.
Geothermal power generation has the potential to expand beyond traditional volcanic-zone locations through EGS technology, and competition among engineering firms to secure related technical capabilities is expected to continue. If this feasibility-stage collaboration leads to an actual commercial project, it could become a new growth axis in the geothermal power equipment market.
Points to watch include the results of the feasibility study, whether an actual pilot project follows, and when specific generation capacity and investment figures are disclosed.