Mitsubishi Heavy Industries Geothermal Strategy 2025: How a Pivot to EGS is Reshaping the Market

Industry Adoption: Mitsubishi Heavy Industries’ Strategic Shift from Legacy Supplier to Next-Gen Geothermal Integrator

Between 2021 and 2024, Mitsubishi Heavy Industries (MHI) operated primarily as a dominant, yet traditional, supplier in the geothermal market. Its commercial activity was centered on reinforcing its legacy strength, securing contracts for large-scale conventional steam turbine plants like the 55 MW Lumut Balai Unit 2 in Indonesia and executing retrofits to modernize existing assets, such as the Darajat plant. The application of its technology was proven but predictable: supplying core hardware for projects in established geothermal hotbeds like Southeast Asia. During this period, innovation was incremental, focused on deploying digital optimization solutions like TOMONI® to enhance the performance of existing assets.

Beginning in 2024 and accelerating into 2025, a significant inflection point occurred. MHI initiated a strategic pivot, transforming its role from a mere component manufacturer to a key enabler and integrated partner in the next-generation geothermal ecosystem. This change is defined by two critical moves: a strategic investment in Enhanced Geothermal Systems (EGS) pioneer Fervo Energy and the deployment of its subsidiary Turboden’s Organic Rankine Cycle (ORC) technology as the core power generation system for landmark EGS projects. The commercial applications have diversified dramatically. MHI is now enabling projects like Fervo’s 500 MW Cape Station, set to power AI data centers for Google and Meta, and the Vulcan Energy geothermal-lithium project in Germany, which integrates power generation with critical mineral extraction. This variety demonstrates that geothermal adoption, supercharged by MHI’s technology, is expanding beyond pure power generation into industrial decarbonization and the backbone of the digital economy, creating new, high-value markets for 24/7 clean energy.

Table: Mitsubishi Heavy Industries Geothermal Investments

Table: Mitsubishi Heavy Industries Geothermal Partnerships

Geography: Mitsubishi Heavy Industries’ Pivot from Asian Strongholds to a Global Next-Gen Footprint

Between 2021 and 2024, MHI’s geothermal activity was geographically concentrated in its traditional stronghold of Southeast Asia. Major commercial events, such as the 55 MW equipment order for the Lumut Balai project with PT Pertamina and the Darajat plant retrofit, were centered in Indonesia. Similarly, the partnership with EDC for the BacMan plant expansion took place in the Philippines. This geographic focus reflected a strategy centered on serving established markets with significant conventional geothermal resources, where MHI has a long history and deep customer relationships.

From 2025 onward, MHI’s geographic map has been redrawn. The focus has decisively shifted to North America and Europe, driven by its next-generation geothermal strategy. The United States, specifically Utah, has become the epicenter of its activity through the massive 300 MWe equipment supply agreement with Fervo Energy for the Cape Station project. This move is a direct response to the burgeoning demand for 24/7 clean power from U.S. tech giants. Simultaneously, the EPC contract for Vulcan Energy’s 32 MWe geothermal-lithium plant in Landau, Germany, signals a strategic entry into the European market, tying MHI’s technology directly to the continent’s critical supply chain needs for EV batteries. This expansion reveals that MHI is now targeting regions where policy, industrial demand, and technological innovation converge to create new, high-value markets for geothermal energy.

Technology Maturity: Mitsubishi Heavy Industries’ Leap from Optimized Legacy Systems to Commercial-Scale EGS Enablement

In the 2021–2024 period, MHI’s technology deployment reflected a mature, commercially scaled, yet conservative portfolio. The core offerings were conventional steam turbines for new plants (e.g., Lumut Balai Unit 2) and retrofits for existing ones (Darajat). The primary innovation was the application of commercially available digital solutions like TOMONI® to optimize these proven systems. While its subsidiary Turboden’s ORC technology existed, its application, as seen in the BacMan brine project, was more for efficiency upgrades rather than as the primary engine for gigawatt-scale development. The technology was mature and scaling, but within the confines of conventional geothermal applications.

The period from 2025 to today marks a crucial validation point for MHI’s next-generation technology strategy. Turboden’s ORC systems have transitioned from niche applications to a commercially scaling, core enabling technology for the EGS market. The selection of its “Gen 2” ORC units for Fervo’s 300 MWe Cape Station supply is not a pilot; it is a commercial-scale deployment that validates ORC as the go-to solution for large EGS projects. Concurrently, MHI’s investment in Quaise Energy, a company developing pre-commercial deep-drilling technology, shows a forward-looking strategy to engage with technologies still in the demonstration phase. This dual approach—scaling its commercial ORC tech while nurturing next-horizon drilling tech—signals to investors that MHI is managing its technology portfolio across multiple stages of maturity to dominate both current and future geothermal markets.

Table: SWOT Analysis of Mitsubishi Heavy Industries’ Geothermal Strategy

Forward-Looking Insights: What MHI’s Geothermal Moves Signal for 2026

The data from 2025 provides clear signals about what energy leaders should watch in the year ahead. MHI’s aggressive and validated strategy has positioned it not just to ride the wave of next-generation geothermal, but to actively shape it. The most critical signal to monitor is the progress of Fervo Energy’s Cape Station, slated for a 2026 launch. The successful commissioning of Turboden’s 300 MWe of ORC units at this site will serve as the ultimate validation of MHI’s symbiotic invest-and-supply model and will likely unlock a flood of investment into the broader EGS sector. Expect MHI to leverage this success to aggressively pursue similar partnerships with other EGS developers, solidifying its ORC systems as the industry standard.

Furthermore, the Vulcan Energy geothermal-lithium contract is not a one-off; it is a strategic beachhead. Watch for MHI and Turboden to pursue further agreements that link geothermal power with critical mineral extraction and other industrial processes. This synergy is gaining significant traction as a key decarbonization pathway. Finally, keep an eye on progress reports from Quaise Energy. While early-stage, any successful field demonstrations of its deep-drilling technology would be a powerful signal of a future market expansion, validating MHI’s venture investment and securing its technology pipeline for the decade to come. The trajectory is clear: MHI is transforming from a manufacturer into a central technology platform for the entire geothermal ecosystem.

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Frequently Asked Questions

What is the main change in Mitsubishi Heavy Industries’ (MHI) geothermal strategy?
The main change is a pivot from being a traditional supplier of conventional steam turbines for established markets like Southeast Asia to becoming an integrated partner and enabler in the next-generation geothermal ecosystem. This involves investing in Enhanced Geothermal Systems (EGS) pioneers and supplying core technology, like Organic Rankine Cycle (ORC) systems, for large-scale EGS projects in new markets like North America and Europe.

What specific technology is central to MHI’s pivot to next-generation geothermal?
The Organic Rankine Cycle (ORC) technology from MHI’s subsidiary, Turboden, is central to its new strategy. While MHI continues to supply conventional steam turbines, its ORC systems are the core enabling technology for major Enhanced Geothermal Systems (EGS) projects, such as the 300 MWe supply agreement for Fervo Energy’s Cape Station.

Why is the Fervo Energy partnership so significant for MHI?
The partnership is significant because it positions MHI as the core technology supplier for the world’s largest EGS project (Cape Station) and validates its new ‘invest-and-supply’ strategy. It moves MHI’s technology into new, high-value markets, such as providing 24/7 clean power for AI data centers run by Google and Meta, and creates a captive market for its Turboden ORC systems.

How is MHI’s strategy expanding the applications for geothermal energy?
MHI’s strategy is helping expand geothermal applications beyond pure power generation. For example, the Fervo Energy project demonstrates geothermal’s role in powering the digital economy (AI data centers), while the Vulcan Energy project in Germany integrates power generation with the extraction of critical minerals (lithium), supporting the EV supply chain and industrial decarbonization.

What is the difference between MHI’s investments and its partnerships in geothermal?
MHI’s investments, such as those in Fervo Energy and Quaise Energy, are strategic financial stakes in technology pioneers to gain early access to innovations like EGS and deep-drilling. Its partnerships, like the supply contracts for Cape Station and the Vulcan Energy plant, are commercial agreements to provide MHI’s equipment. The strategy is symbiotic: the investments create a future market that the partnerships then fulfill, as seen with the Fervo investment leading to a major supply contract.