Japan is likely to sweeten terms for developers to build a massive offshore wind farm sector, industry insiders say, as it looks to put its energy ambitions back on track against a
Japan is likely to sweeten terms for developers to build a massive offshore wind farm sector, industry insiders say, as it looks to put its energy ambitions back on track against a worldwide slump of projects hit by soaring costs and delays.
The government aims to have 45 gigawatts of offshore wind capacity by 2040, which is essential to cutting the country's dependence on imported coal and gas for power generation, reducing its carbon emissions and bolstering national security.
But its plans have stalled following three major rounds of auctions to develop capacity. Trading house Mitsubishi, the winner in the government's first auction in 2021, cautioned in February that surging costs had forced it to review its plans. It has yet to start construction on any projects.
Mitsubishi's warning, along with booking over $300 million in offshore wind losses, followed a decision by Denmark's Orsted to pull out of Japan last year in a global restructuring.
Shell, too, recently cut its team focused on Japan offshore wind, three industry sources said, as it scales back low-carbon operations.
Shell declined to comment on its offshore wind operations, but said it "continuously evaluates opportunities to optimise its global portfolio".
Looking to defy
Content Original Link:
" target="_blank">
