Mitsubishi Corporation has officially announced its withdrawal from three offshore wind power projects located off the coasts of Chiba and Akita prefectures in Japan. The decision follows a substantial increase in construction costs, with expenses reportedly doubling compared to initial plans, primarily due to soaring material prices and the rising cost of wind turbines. Mitsubishi's president, Katsuya Nakanishi, cited the difficulty in establishing a feasible business plan under these conditions as the key reason for the exit. The withdrawal is expected to cause financial losses, with Chubu Electric Power, a project partner, anticipating a loss of approximately 17 billion yen. The move marks a setback for Japan's renewable energy strategy, which heavily relies on offshore wind power to enhance energy self-sufficiency and reduce dependence on imported fuels. The Japanese government expressed regret over the development, with Economy Minister Yasutoshi Nishimura meeting Mitsubishi's president to discuss the withdrawal. Local officials, including Chiba Governor Toshihito Kumagai, criticized Mitsubishi for the impact on regional preparations and economic expectations tied to the projects. The government is considering revising auction and subsidy frameworks for offshore wind projects to address issues related to cost underestimation and bidding practices. Additionally, the withdrawal has prompted concerns about delays in Japan's renewable energy goals and has led to plans for re-auctioning the affected offshore wind sites. The situation has also affected related industries, with NTN, a Japanese bearing manufacturer, announcing the closure of its wind power parts factory amid the sector's challenges. Mitsubishi stated that despite the withdrawal, it continues to recognize offshore wind as a vital component of Japan's energy future, though it expects limited additional financial losses from the exit.