Sage Geosystems (“Sage”) and Chiyoda Corporation (“Chiyoda”), have signed a memorandum of understanding (“MOU”) to jointly conduct a technical and commercial feasibility study (“Study”) of high-pressure surface facilities required for a commercial-scale power generation system using Sage’s proprietary enhanced geothermal systems (“EGS”) approach. The facilities will recover energy from high-temperature, high-pressure fluid produced from wells.

Sage’s proprietary EGS approach injects water into an engineered underground reservoir in hot rock and utilizes both subsurface heat and the pressure energy stored in the reservoir. Water flows back up from the reservoir, limiting the loss of pressure and water, which strengthens both plant efficiency and project economics. In addition to providing stable, low-carbon baseload power, the approach is being advanced towards long-duration energy storage, using surplus electricity to store pressure energy underground for recovery in response to electricity demand.

Conventional geothermal power generation relies on naturally occurring underground steam or hot-water resources and is generally limited to specific geographic areas. EGS like Sage’s apply drilling, well construction and subsurface reservoir management technologies developed in the oil and gas industry, potentially enabling geothermal resources to be utilized in areas previously considered unsuitable for geothermal development. Unlike solar and wind power, geothermal energy is less affected by weather or the time of day and can provide continuous electricity, making it an attractive source of stable power for data centers, industrial facilities, community microgrids and critical infrastructure. Sage is developing and commercializing EGS in the United States for baseload geothermal power and long-duration energy storage.

“Chiyoda’s expertise in engineering complex, high-pressure industrial facilities makes it an ideal partner as we move Sage’s proprietary EGS approach toward commercial scale. This collaboration is a significant step in proving out the surface infrastructure needed to convert our subsurface innovation into gigawatt-scale power generation and long-duration energy storage,” said Shayne Dustin, SVP Engineering & Development at Sage.

“Geothermal energy has significant untapped potential, and next-generation technologies like Sage’s are key to unlocking it. This collaboration brings together Chiyoda’s engineering strength in high-pressure facility design with Sage’s subsurface methodologies. Together, we aim to accelerate the path to commercial-scale deployment and deliver a dependable, low-carbon power source,” said Ken Kimeta, Head of Business Co-Creation, Assistant Division Director of Business Development & Growth Transformation Division at Chiyoda.

Under the Study, based on wellhead pressure, temperature conditions, fluid properties and operating conditions provided by Sage, Chiyoda will evaluate the major equipment configuration of the high-pressure surface facilities, power and energy balances, indicative capital, operating costs and power generation cost.

This initiative has been selected for support under the Tokyo Metropolitan Government’s ‘TIB CATAPULT’ program, a cluster initiative to drive global innovation promoted by Plug and Play Japan, the TIB cluster representative. The Study also aligns with Tokyo’s ‘Zero Emission Tokyo Strategy’ and contributes to decarbonization. Chiyoda and Sage will continue evaluating the technical and business aspects of deploying next-generation geothermal technology and realizing a new source of stable, low-carbon power.

As a comprehensive engineering company, Chiyoda seeks to fulfill its purpose of ‘Enriching Society through Engineering Value’ and will continue contributing to solutions for global challenges through technologies deployed in society.

About Sage Geosystems

Sage Geosystems is a U.S.-focused enhanced geothermal systems (EGS) power developer advancing proprietary approaches designed to make geothermal energy more scalable, repeatable, and commercially competitive. Sage’s patented EGS approach uses engineered subsurface reservoirs to minimize water and energy losses, increase net power output, and enable firm, reliable, 24/7 power generation across a broad range of geologies. Headquartered in Houston, Texas, Sage is advancing commercial geothermal projects in collaboration with leading energy and technology companies and is backed by a diverse group of strategic and financial investors. Founded in 2020 by a team with deep subsurface and energy-development expertise, Sage is working to expand access to geothermal power and establish EGS as a scalable source of dependable, baseload electricity. For more information, visit www.sagegeosystems.com.

About Chiyoda Corporation

Based in Yokohama, Kanagawa, Japan, Chiyoda Corporation is a fully integrated engineering company providing consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for complex energy and industrial facilities worldwide. Chiyoda has delivered projects across approximately 60 countries and regions since its establishment in 1948, building extensive experience in LNG and gas processing, refining, petrochemicals and chemicals, power and energy infrastructure, pharmaceuticals, and advanced industries. Drawing on its multidisciplinary engineering capabilities, proprietary technologies, and global project-execution network, Chiyoda is also advancing low-carbon solutions in areas including hydrogen, fuel ammonia, CCS/CCU, e-fuels, renewable energy and energy storage. Based on its purpose of ‘Enriching Society through Engineering Value’, Chiyoda partners with customers from the earliest stages of project development to realize ‘business co-creation’, while contributing to a sustainable society through its mission of ‘Energy and Environment in Harmony’. For more information, visit https://www.chiyodacorp.com/en/

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