The Mitsubishi Corporation has been developing offshore wind projects in three areas off the coast of Japan, but a review of its business plans has concluded that it will now not proceed with the developments.

In a statement the company says that the decision is a result of the wake of the pandemic and the Ukraine crisis, causing the business environment for offshore wind power to significantly shift due to factors such as tight supply chains, inflation, exchange rates, and rising interest rates.

The statement adds: “we have determined that establishing a viable business plan is not feasible given the current conditions”.

Japan has committed itself to offshore wind farm capacity of 10 GW by 2030 and 45 GW by 2040, and the withdrawal of Mitsubishi will be a blow to its aims. The country is determined to wean itself off fossil fuels, especially in a future in which it sees power-hungry AI as essential.

The news follows troubles for Ørsted’s offshore wind plans in the UK and US, having decided to discontinue the Hornsea 4 project in the UK in its current form and refinance due to difficulties with the US-based Sunrise project.

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