Key Facts
• August 27, 2025: Mitsubishi Corporation officially announced withdrawal from three offshore wind projects.
• Projects were located off the coasts of Akita and Chiba prefectures, totaling 1.7 GW capacity.
• Initial bid in May 2021 offered competitive pricing but failed to absorb rising costs.
• External factors: post-COVID demand recovery, 2022 Ukraine crisis, inflation, and currency fluctuations.
• Mitsubishi recorded a ¥52.4 billion ($356 million) impairment loss for FY2025.
• Additional ¥20 billion ($136 million) deposit forfeited to the government.
• Chubu Electric Power expects a ¥17 billion ($116 million) loss for FY2026.
• Competitors Marubeni and Itochu claim cost increases were accounted for in their plans.
• Marubeni operates a 140 MW wind farm and is developing a 450 MW project in Yamagata.
• Itochu is advancing a 315 MW project in Akita with JERA and other partners.
Summary
Mitsubishi Corporation has decided to withdraw from three offshore wind power projects off the coasts of Akita and Chiba prefectures, citing insurmountable cost increases due to external factors such as inflation, currency fluctuations, and the Ukraine crisis. The projects, with a combined capacity of 1.7 GW, were initially awarded in 2021 based on competitive pricing. Despite efforts to mitigate costs, including design changes and operational adjustments, the company deemed the projects financially unviable. Mitsubishi has already recorded a ¥52.4 billion ($356 million) impairment loss and will forfeit an additional ¥20 billion ($136 million) deposit. Competitors Marubeni and Itochu, who are advancing their own offshore wind projects, claim to have accounted for cost increases in their plans. This development raises concerns about the viability of Japan’s offshore wind initiatives amid changing economic conditions.
