Geothermal engineering firm Ormat Technologies is to help Japan increase its geothermal energy capacity after signing a cooperation agreement with JFE Engineering Corporation.

The two companies are to collaborate on the construction of new geothermal power plants in Japan using Ormat’s proprietary binary cycle Ormat Energy Converters and geothermal combined cycle units. The agreement comes in response to moves by the Japanese government to boost geothermal energy capacity.

Under the agreement Ormat will supply the power generation equipment and related engineering while JFE will be responsible for building the power plants and the related balance of plant and infrastructure. The Japanese firm will also provide local maintenance services where required.

Japan’s Ministry of Economy, Trade and Industry wants to increase Japan’s geothermal energy capacity by 600 MW in the next ten years. Geothermal energy is part of the country’s Renewable Portfolio Standard.