Chevron and MOECO to pilot test closed-loop geothermal in Hokkaido, Japan
Chevron and MOECO have agreed to jointly conduct a pilot test for Advanced Closed Loop (ACL) geothermal technology in Hokkaido, Japan.
Chevron New Energies International Pte, Ltd. (Chevron) and Mitsui Oil Exploration Co., Ltd (MOECO) have announced the signing of definitive agreements to proceed with the pilot testing of Advanced Closed Loop (ACL) geothermal technology in the Niseko region of Hokkaido, Japan.
Chevron and MOECO had previously signed a Joint Collaboration Agreement (JCA) to explore the technical and commercial feasibility of advanced geothermal power generation in Japan. The agreement to conduct pilot testing will be the first project executed under this JCA.
ACL technology involves subsurface heat exchange through conduction by circulating a working fluid from the surface through a loop of underground wells to generate electricity (through surface facilities) by utilizing subsurface geothermal heat (subsurface radiator). It does not require direct extraction of hot water (brine) or steam from underground reservoirs, as is the case with conventional geothermal technology.
ACL is gaining momentum worldwide as a novel technology that has the potential to unlock geothermal energy globally in multiple locations, closer to load and customers.
The pilot test aims to aid in the derisking, scaling, and commercialization of geothermal power generation using ACL technology. MOECO and Chevron New Energies Japan will consider commercial applications based on learnings from this
pilot both in Japan and globally and will leverage the long relationship between the two companies that has developed through a collaboration of more than 40 years in energy development in the Asia Pacific region.
“Chevron believes that the future of energy is lower carbon and aims to be a leader in providing affordable, reliable and ever cleaner energy. Chevron and MOECO believe that geothermal can be a significant enabler in Japan’s lower carbon and net zero journey,” said Barbara Harrison, Vice President of Offsets and Emerging, Chevron New Energies International Pte, Ltd.
“We are pleased to launch this pilot test of ACL technology with Chevron New Energies. ACL technology has the potential to unlock geothermal development in Japan and around the world. We expect to open up a new geothermal business by collaborating with Chevron New Energies, which has advanced technology and extensive experience to tackle this challenging project,” said Hirotaka Hamamoto, Chief Executive Officer of MOECO.
