Mitsubishi Corporation has decided not to proceed with three offshore wind projects in Japan after a comprehensive review of its business plans, the company said on Tuesday.
The affected projects include the 891-megawatt (MW) Yurihonjo and 478.8 MW Noshiro Mitane Oga projects off Akita prefecture, as well as the 390.6 MW Choshi City project off Chiba prefecture.
Mitsubishi, which dismissed reports of abandoning the sites just a day earlier, said the decision reflects significant changes in the global business environment since it was selected as operator in 2021.
The company cited supply chain constraints, inflationary pressures, currency fluctuations, and rising interest rates as key challenges impacting project viability.
“We explored various options including reassessing costs, schedules and revenue,” Mitsubishi said. “However, after careful consideration, we and our partners concluded that a viable business plan is not possible under current conditions.”
Mitsubishi noted that most losses related to the decision have already been accounted for, with any further losses expected to be limited.
Despite the withdrawal, Mitsubishi reiterated its commitment to renewable energy, stating it remains a critical component of Japan’s energy mix and underlining its ongoing support for decarbonisation efforts while continuing to monitor the evolving business environment.
