Mitsubishi Exits Three Japan Offshore Wind Projects on Cost Pressures

Mitsubishi Corp. is preparing to withdraw from three government-backed offshore wind farms planned off the coasts of Chiba and Akita prefectures, according to reports from Nikkei and other Japanese media published Tuesday. The trading house is working with partner Chubu Electric Power to terminate the projects, which were viewed as early cornerstones of Japan’s nascent offshore wind industry. The consortium won the sites in a 2021 auction but now judges the ventures to be unviable as soaring material costs collide with the low prices it bid to secure the contracts. The wind farms had been slated to begin operating after 2028. A withdrawal would force the Japanese government to re-tender the areas and poses a setback to its push to expand renewable energy capacity. Mitsubishi’s decision underscores broader cost headwinds confronting offshore wind developers worldwide.