Mitsubishi Corporation has decided to withdraw from three offshore wind projects in Japan for which the company secured sites in 2021.
In December 2021, consortia led by Mitsubishi Corporation’s subsidiary Mitsubishi Corporation Offshore Wind were selected to develop all of the projects offered in Japan’s first fixed-bottom offshore wind auction.
The projects include the 819 MW Yurihonjo wind farm offshore Akita Prefecture, the 478.8 MW Noshiro Mitane Oga project, also off Akita Prefecture, and the 390.6 MW Choshi wind farm offshore Chiba Prefecture.
The strike price secured in 2021 for the Yurihonjo offshore wind farm is JPY 11,990 per MWh (around EUR 69.85 per MWh), for Noshiro Mitane Oga JPY 13,260 per MWh (around EUR 77.25 per MWh), and JPY 16,490 per MWh (around EUR 96.10 per MWh) for the Choshi offshore wind farm.
In February this year, Mitsubishi Corporation revealed it had launched a review of the business plans for the three projects “due to material changes in the macroeconomic environment.“
On 26 August, media reports said the company was now in the process of withdrawing from the projects, which Mitsubishi denied on 26 and 27 August, saying it was considering all options but that no decision had been made.
However, later on 27 August, Mitsubishi Corporation issued a press release saying the company decided not to continue with the projects.
“As announced in February 2025, [Mitsubishi Corporation] has been reviewing the business plans for these projects due to unexpected changes in the business environment. As a result of the review, we have decided not to proceed with the development of the projects”, the company said.
Since the Mitsubishi-led consortia were selected to build and operate the three offshore wind farms in December 2021, the offshore wind market has been experiencing tight supply chains, inflation, exchange rates, and rising interest rates, affecting the business environment, according to Mitsubishi Corporation.
“To adapt to these unexpected changes, we have been pursuing various options including reassessment of costs, project schedule, and revenue. However, after discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions”, the company said.
“The majority of the losses related to this matter have already been accounted for in prior years, and any additional losses are expected to be limited.”