Toshiba will take a 55 percent stake in a venture set up by the two companies, while Orix will hold the remainder, according to a statement today.
Surveys will be done in the Nakao area in Gifu prefecture in central Japan with a goal to building a plant once commercial viability is confirmed, according to the statement. The plant is expected to start in 2015.
The companies plan to invest less than 2 billion yen ($20 million), the Nikkei newspaper reported earlier today. Additional surveys are needed before the cost can be determined, Toshiba spokesman Tomoyuki Numata said.
Toshiba has supplied geothermal power generation systems for almost half a century, while Orix has been promoting renewable energy such as solar and biomass, the companies said.
To contact the reporter on this story: Chisaki Watanabe in Tokyo at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org