Mitsubishi Corporation is dropping plans to develop three offshore wind projects in Japan amid unexpected changes and rising challenges in the market, the Japanese conglomerate said on Wednesday.
In February this year, Mitsubishi said it is reviewing its business plans for Japanese offshore wind power generation projects “due to material changes in the macroeconomic environment.”
In December 2021, Mitsubishi won in a Japanese auction projects in three Japanese sea areas.
“However, in the wake of the pandemic and the Ukraine crisis, the business environment for offshore wind power has significantly changed and is continuing to change worldwide due to factors such as inflation, the depreciation of the yen, tight supply chains, and rising interest rates,” the Japanese corporation said in February 2025.
As a result of the review of the business plans for these projects due to unexpected changes in the business environment, Mitsubishi today announced it had decided not to proceed with their development.
Since Mitsubishi was selected as the operator of the projects in December 2021, the business environment for offshore wind power “has significantly changed worldwide due to factors such as tight supply chains, inflation, exchange rates, and rising interest rates.”
Mitsubishi sought to adapt to these changes by examining 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 corporation said.
Mitsubishi’s decision to abandon the projects in Japan comes amid rising headwinds to offshore wind development worldwide.
Ørsted, the world’s biggest offshore wind project developer, warned in May of a continued challenging environment for the industry with mounting near-term headwinds globally.
The challenges piled for Ørsted last week after the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) issued on Friday a stop-work order for the Revolution Wind project offshore the U.S. East Coast.
The project is 80% complete with all offshore foundations installed and 45 out of 65 wind turbines installed. But the Revolution Wind joint venture of Ørsted and Global Infrastructure Partner’s Skyborn Renewables is complying with the order and is taking appropriate steps to stop offshore activities, the Danish company said.
By Tsvetana Paraskova for Oilprice.com
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