Mitsubishi Halts Offshore Wind Projects in Japan

30 Aug 2025 CW Team

Mitsubishi Corporation (MC) has announced its decision to withdraw from three major offshore wind projects off the coast of Japan due to a significant shift in global business conditions. The projects were being developed through a consortium led by its subsidiary, Mitsubishi Corporation Offshore Wind Ltd., and were located off the shores of Noshiro City, Mitane Town, and Oga City in Akita Prefecture; Yurihonjo City in Akita Prefecture; and Choshi City in Chiba Prefecture.

The company stated that following a review initiated in February 2025, it concluded the projects were no longer viable. The reassessment was triggered by considerable and unforeseen changes in the offshore wind sector, which have emerged globally in the wake of the COVID-19 pandemic and the war in Ukraine. These include tightened supply chains, surging inflation, unfavourable exchange rate fluctuations, and rising interest rates—factors that have collectively undermined the financial feasibility of the projects.

Since being selected to operate the projects in December 2021, Mitsubishi and its consortium partners have explored multiple avenues to adapt to the shifting landscape. This included a detailed re-evaluation of costs, scheduling, and potential revenue. However, after extensive deliberations, the consortium concluded that establishing a viable business plan under current market conditions was not possible.

The company clarified that most of the associated losses have already been recognised in previous financial years, and any further financial impact is expected to be minimal.

Despite the setback, MC reaffirmed its commitment to renewable energy and its broader role in Japan’s decarbonisation efforts. The company reiterated that offshore wind remains a crucial part of the nation’s future energy mix and expressed intent to continue supporting clean energy initiatives while monitoring global and domestic developments in the sector.

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