Mitsubishi Plans Exit From Three Japan Offshore Wind Projects

Mitsubishi Corporation is planning to withdraw from three offshore wind power projects in Japan's Akita and Chiba prefectures due to rising construction costs and concerns over profitability. The escalating expenses are driven by a weaker yen, increasing material prices, and higher labor costs, which have made it difficult for the company to secure profits from these projects. Mitsubishi had led consortia that won Japan’s first state-run offshore wind auctions in 2021, with plans to start operations between 2028 and 2030. This withdrawal poses challenges for Japan's government, which aims to promote offshore wind as a key part of its decarbonization strategy and has set ambitious targets of 10 gigawatts by 2030 and 45 gigawatts by 2040. Mitsubishi is reportedly still reviewing its overall approach to domestic offshore wind projects amid a significantly changed business environment. The decision signals broader difficulties in Japan’s fledgling offshore wind industry as it confronts global cost pressures and slow progress.