Mitsubishi Corporation has decided not to proceed with three offshore wind projects in Japan following a review of business plans.
The 891MW Yurihonjo, 478.8MW Noshiro Mitane Oga, both off Akita prefecture, and the 390.6MW Choshi City projects off the coast of Chiba prefecture will not proceed.
Mitsubishi, which yesterday denied reports it was walking away from the sites, today said the decision reflects changes in the global business environment since its selection as operator in 2021.
The company cited supply chain constraints, inflation, exchange rates and rising interest rates as key challenges.
It said various options had been explored, including reassessing costs, schedules and revenue.
However, Mitsubishi and its partners concluded that a viable business plan was not possible under current conditions.
The company said most losses related to the decision had already been accounted for and further losses would be limited.
Mitsubishi added it still sees renewable energy, including offshore wind, as an essential part of Japan’s energy mix.
It said it remains committed to supporting decarbonisation while monitoring the business environment.