Mitsubishi Corporation has announced its withdrawal from three Japanese offshore wind projects in Chiba and Akita prefectures, citing construction costs that have more than doubled since the 2021 bidding phase. The projects, with a combined projected capacity of 1.76 GW, were scheduled to begin operations between 2028 and 2030.
Mitsubishi CEO Katsuya Nakanishi explained that even with measures like supply chain restructuring, total costs—including maintenance and operational expenses—would exceed expected electricity sales, making the projects financially unfeasible. Partner Chubu Electric Power expects a loss of around 17 billion yen this fiscal year due to the withdrawal.
Japan is targeting 10 GW of offshore wind by 2030 and 45 GW by 2040 to reduce fossil fuel imports. While Mitsubishi reaffirmed its commitment to decarbonization, the withdrawal delays the country’s offshore wind expansion. The Ministry of Economy, Trade and Industry plans to re-auction the sites to maintain momentum, despite challenges posed by rising costs.
Source: Reuters