Chiyoda Corporation of Japan has announced that it signed a memorandum of understanding (MOU) with Sage Geosystems of the United States for a joint feasibility study aimed at commercializing Enhanced Geothermal Systems (EGS) technology. The MOU is reported to have been signed on August 26, 2026.
Under the MOU, Chiyoda Corporation and Sage Geosystems are reportedly set to conduct a joint feasibility study covering the design of surface facilities for EGS operating under ultra-high-temperature and high-pressure conditions, as well as evaluation of power output and economic viability. Sage Geosystems holds its own proprietary EGS technology that injects water into underground reservoirs to simultaneously harness thermal and pressure energy, while Chiyoda Corporation is reported to be responsible for the high-pressure surface facility engineering required to apply this technology.
Sage Geosystems, founded in 2020 and headquartered in Houston, Texas, is reported to specialize in EGS-based geothermal power generation and long-duration energy storage technology development. The joint feasibility study is reported to have been selected for support under Tokyo Metropolitan Government’s global innovation support program, ‘TIB CATAPULT.’ Specific figures such as the investment amount, study duration, and target power generation scale have not been disclosed.
EGS is a next-generation geothermal technology that enables power generation by artificially injecting water into underground reservoirs even in areas where conventional geothermal development has been difficult, and it is drawing attention as a means of diversifying renewable energy sources; the agreement is reported to represent Chiyoda Corporation’s entry into the geothermal power sector on the strength of its plant engineering capabilities.
As collaboration between engineering firms and technology-holding startups increases in the process of commercializing next-generation renewable energy technologies including geothermal power, this case is viewed as reflecting a broader trend of companies with EPC (Engineering, Procurement and Construction) capabilities expanding into the renewable energy sector.
Points to watch include whether the results of this joint feasibility study will lead to an actual commercialization project, and whether specific power generation capacity or a project site will be finalized going forward.