The Japanese program in the late 1980s concentrated on closed-cycle MHD. The belief was that it would have higher efficiencies, and smaller equipment, especially in the clean, small, economical plant capacities near 100 megawatts (electrical) which are suited to Japanese conditions. Open-cycle coal-powered plants are generally thought to become economical above 200 megawatts.
The first major series of experiments was FUJI-1, a blow-down system powered from a shock tube at the Tokyo Institute of Technology. These experiments extracted up to 30.2% of enthalpy, and achieved power densities near 100 megawatts per cubic meter. This facility was funded by Tokyo Electric Power, other Japanese utilities, and the Department of Education. Some authorities believe this system was a disc generator with a helium and argon carrier gas and potassium ionization seed.
In 1994, there were detailed plans for FUJI-2, a 5 MWe continuous closed-cycle facility, powered by natural gas, to be built using the experience of FUJI-1. The basic MHD design was to be a system with inert gases using a disk generator. The aim was an enthalpy extraction of 30% and an MHD thermal efficiency of 60%. FUJI-2 was to be followed by a retrofit to a 300MWe natural gas plant.