There is an indigenous risk in the geothermal development as it is not always the case that a geothermal reservoir found leads to steam discharging. JOGMEC has set up support systems for companies from the stage of survey to development, which provides funds required for a survey to assess geothermal resources after they are found and also provides guaranty of liability for borrowings from financial institutions in the stage of development to facilitate easier funding.
JOGMEC finances up to 50% of the funds required by a company engaged in a geothermal exploration to reduce the risk that private companies cannot shoulder alone, and to facilitate the development of geothermal resources by them.
Liability guarantee for development
JOGMEC evaluates the risk involved in developing geothermal resources that private financial institutions cannot evaluate by themselves, and helps them finance the development smoothly. In the case where a company is engaged in geothermal resource development is financed by private financial institutions for the construction of a geothermal power plant, JOGMEC offers a debt guarantee for up to 80% of the loan provided by the institution.