The media report from the Yomiuri Shimbun stated that Mitsubishi Corporation announced on August 27, 2025, its withdrawal from three offshore wind power projects in the coastal areas of Chiba Prefecture and Akita Prefecture in Japan. The main reasons were the tight supply chain, inflationary pressures, and exchange rate fluctuations that led to rising project costs and a change in the business environment. The Japanese government's wind power strategy has been severely hit.
The reason for the withdrawal is the soaring project costs due to a tight supply chain and inflation, compounded by exchange rate fluctuations that further increased financial pressure. The tough policies of the Trump administration on clean energy (such as halting the approval of wind power projects on federal land) have raised concerns among international investors, possibly indirectly affecting the financing environment for Japanese projects.
This project involves three wind farms along the coasts of Chiba Prefecture and Akita Prefecture. Mitsubishi Corporation originally planned to advance the projects with partners, but ultimately decided to withdraw due to their impracticality.
Mitsubishi Corporation said it will closely monitor changes in the business environment and continue to promote the development of renewable energy, but it did not clearly state whether it would seek other partners to take over the projects.
Mitsubishi Corporation won the first round of bids for three sea areas in December 2021. The plan was to build offshore wind farms with a total output of about 1.7 million kW along the coasts of Noshi City, Miyako Town, and Oga City in Akita Prefecture, including 49.4 million kW (supply price 13.26 yen/kWh), 84.5 million kW (supply price 11.99 yen/kWh) along the coast of Yuribeyama City in Akita Prefecture, and 40.3 million kW (supply price 16.49 yen/kWh) along the coast of Tachibana City in Chiba Prefecture.
Mitsubishi Corporation won the bid because, at the time of bidding, it was assessed to have a supply price lower than other competitors. However, after that, due to factors such as the Ukraine crisis, the global material prices rose, casting doubt on the commercial viability of the project.
In February 2025, Mitsubishi Corporation recorded an offshore wind power loss of 52.2 billion yen (a full-year loss of 52.4 billion yen) in its third-quarter fiscal year 2024 financial report. At the press conference for the financial report, the company's president, Katsuya Nakanishi, announced that it would "reassess its offshore wind power business plan from scratch."
Recently, it was reported that the company originally responsible for the main construction, Kajima Corporation, has withdrawn from the project, and the future of the project is under close scrutiny.
Original source: www.toutiao.com/article/1841652838522880/
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