Around 1955, when the mining economy was beginning to show signs of slowing down, the company was planning to construct a new recreation center in anticipation of increased tourism demand in the future. As a start, they drilled a borehole in the Matsukawa hot spring area, but of the four boreholes they drilled, only one produced hot spring water. The remaining three boreholes emitted high-quality steam, not hot spring water.
Japan was in the midst of a period of rapid economic growth. Electric appliances were beginning to spread to ordinary households, and demand for a stable supply of electricity was rising. Led by Matsuo, the village mayor at the time, who thought that steam could be used for power generation, the company proceeded with research and excavation work in cooperation with academic institutions and other organizations.
In 1966, the Matsukawa Geothermal Power Plant, Japan's first geothermal power plant, began operation. The Matsukawa Geothermal Power Plant, which utilizes the best of modern science of the time to generate power from geothermal steam, a natural clean energy of the earth, is still in operation more than 50 years later (as of 2021) and continues to produce geothermal energy.
In the 1970s, the company succeeded in drawing hot water from a 6-kilometer section of the Matsukawa geothermal power plant. Starting with the opening of Hachimantai Heights as a recreation center that took advantage of the good quality hot spring water, hotels and inns were built one after another, giving birth to Hachimantai Hot Spring Village and a great boost to the tourism business.
In January 2019, the Matsuo-Hachimantai Geothermal Power Plant, the second geothermal power plant in the city, will begin full-scale operation. In addition, a study conducted by NEDO (New Energy and Industrial Technology Development Organization) confirmed the existence of promising geothermal resources underground in the Appi area, and construction of the city's third geothermal power plant, the Appi Geothermal Power Plant, is underway.
Abundant geothermal energy is a gift from the earth. Today, Hachimantai City is known as a town where geothermal energy is utilized not only for power generation but also for industry and agriculture to realize a sustainable lifestyle. The latest IoT technology and geothermal hot water are used to cultivate basil, geothermal steam is used to bleach colors, and geothermal steam dyeing is used in many other ways in the city.