Mitsubishi Corporation has announced its withdrawal from three offshore wind projects in Japan, citing sharply rising costs that have made the ventures financially unsustainable. The projects, located in Chiba and Akita, were awarded in 2021 and planned to deliver 1.76 GW of capacity by 2030.
CEO Katsuya Nakanishi stated that construction costs have more than doubled since bidding, and even with supply chain adjustments, total expenses would exceed projected revenue. Mitsubishi has already booked a ¥52.2 billion ($354 million) charge, while partner Chubu Electric expects a ¥17 billion loss this fiscal year.
Japan aims to reach 10 GW of offshore wind capacity by 2030, but Mitsubishi’s exit alongside prior withdrawals by Ørsted and Shell raises concerns about the sector’s viability. Industry Minister Yoji Muto called the move “regrettable” and warned it could erode public trust. The government plans to re-auction the sites, though rising costs may deter new bidders.
Despite the setback, analysts suggest the industry is undergoing a necessary reset. Yuriy Humber of Yuri Group noted that while Mitsubishi’s bids were aggressive, the sector may emerge stronger through rebalancing.