Key Facts
• Mitsubishi Corporation plans to withdraw from offshore wind projects in Akita and Chiba.
• The projects were initiated in 2021 in collaboration with Chubu Electric Power.
• Rising construction material and labor costs made profitability unfeasible.
• In February, Mitsubishi announced a re-evaluation of the project’s viability.
• The company recorded a loss of 52.4 billion yen in its financial results.
• The projects are part of a government-led energy initiative.
• Withdrawal may lead to re-tendering and impact Japan’s energy policy.
Summary
Mitsubishi Corporation is finalizing plans to exit offshore wind power projects in Akita and Chiba due to unmanageable costs. Initiated in 2021 with Chubu Electric Power under a government program, the projects faced challenges from surging material and labor expenses. In February, Mitsubishi re-evaluated the project’s feasibility, later reporting a 52.4 billion yen loss. This withdrawal could prompt re-tendering and influence Japan’s energy strategy.
