MITSY Mitsui and Company Ltd (PK)

By Fabiana Negrin Ochoa

Chevron Corp.'s low-carbon fuels unit is teaming up with Mitsui & Co.'s oil-exploration subsidiary to look into the potential of geothermal power generation in Japan, the companies said Monday.

Chevron New Energies International Pte., formed by the U.S. energy giant last year, signed a joint collaboration agreement with Mitsui Oil Exploration Co. to evaluate the effectiveness of advanced closed loop technology for a future geothermal project in Japan.

"Unlike conventional geothermal projects, which use traditional steam turbines requiring high temperatures often found in concentrated locations limited by geological characteristics, ACL can potentially enable access to geothermal resources at a wider range of temperatures and geologies," they said in a statement.

The companies may also consider geothermal opportunities elsewhere.

The collaboration, which aims to combine Chevron's subsurface tech with Mitsui Oil's geothermal expertise, "could unlock tremendous geothermal resources in Japan," said Hirotaka Hamamoto, chief executive of Mitsui Oil Exploration.

Geothermal power plants proliferated in Japan the wake of the Fukushima disaster in 2011 thanks to policy support, but still account for only a sliver of the country's energy output. According to the International Renewable Energy Agency, geothermal power has the potential to be a key driver of the energy transition in Japan, which has the world's third-largest store of the energy source.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

September 26, 2022 04:33 ET (08:33 GMT)

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