Mitsubishi (TYO:8058) is investing in US-based Quaise Energy to help introduce enhanced geothermal systems (EGS) in Japan, aiming to expand renewable power sources amid rising electricity demand from data centers, Nikkei Asia reported Tuesday.

Unlike traditional geothermal plants limited to hot springs or mountains, Quaise's millimeter wave technology can access superheated rock at depths of up to 20,000 meters, opening up flat land for development. A single EGS well could generate 25-40 MW, significantly more than conventional systems, Nikkei noted.

Japan holds over 77 GW in untapped geothermal potential suitable for such next-gen methods, and the government is expected to begin policy discussions to support the sector's growth in the 2030s, the report said.

Separately, Toyo Engineering (TYO:6330) plans to pilot a closed-loop geothermal system in Indonesia this year, with commercial rollout expected by 2027. Canadian startup Eavor, backed by Chubu Electric Power (TYO:9502) and Kajima (TYO:1812), also plans to expand its geothermal footprint in Asia.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)