Toshiba and ORIX to Jointly Establish Geothermal Power Generation Company

Toshiba Corporation and ORIX Corporation, a leading integrated financial services group, announced today that they will jointly establish a geothermal power generation company on November 19 and to proceed with a geothermal power generation business in Nakao, Okuhida Onsen, Gifu Prefecture through this new company.

The new company, Nakao Geothermal Power Generation Corporation (hereinafter, “Nakao Geothermal”), will be owned 55% and 45% by Toshiba and ORIX, respectively. The natural hot spring sources of the Nakao area produce abundant, high-temperature steam, making them ideally suited for geothermal power generation. Moving forward, Nakao Geothermal will assess commercial viability through conducting surveys of the hot spring sources in the Nakao area, well testing and environmental surveys of the surrounding area. If this testing confirms commercial viability, there are plans to construct a geothermal power plant with power generation output of 2,000 kW (2MW) which will aim to commence power generation in 2015. Looking ahead, both companies will cooperate with Nakao Hot Springs Corporation to promote business development with the aim of utilizing geothermal energy in the hot-spring area.

The planned geothermal power generation facility will use the Toshiba-made GeoportableTM, a compact geothermal power generation system ideal for locations with one or two geothermal wells and can be set up in a short period of time.

With a track record of delivering geothermal power facilities for over nearly a half century globally, Toshiba has established a top share in the world*. Toshiba will aim to expand renewable energy business including hydroelectric, solar and wind power systems while contributing to the spread of renewable energy by participating in this geothermal power generation business.

ORIX is actively promoting power generation businesses that utilize solar, biomass and other forms of renewable energy. Further, at the Suginoi Hotel (Beppu City, Oita Prefecture), operated by the ORIX group as a Japanese hot spring inn rehabilitation project, ORIX owns and operates one of the largest private geothermal power generation facilities in Japan with a generation capacity of 1,900 kW (1.9 MW). Leveraging operational know-how from its power generation operations and hot springs inns, ORIX aims to develop commercially viable geothermal power generation businesses in multiple locations throughout Japan and in doing so contribute to regional development.

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