Fourteen Japanese firms, including JERA, Tokyo Gas [9531:JP], and Mitsubishi’s [8058:JP] wind power unit, have formed a consortium to promote the development of floating offshore wind technologies, as reported by Reuters on March 15. These companies plan to jointly develop technologies to produce platform components at scale and lower manufacturing costs. The organization underscored the potential of floating offshore wind to ensure a stable and sustainable energy supply, drive the local economy, and promote Japanese industries. Japan’s Ministry of Economy, Trade and Industry (MIIT) has approved the initiative and is preparing to provide financial support.

The initiative aligns with Japan’s ambition to ramp up its offshore wind capacity to 10 gigawatts (GW) by 2030 and 45GW by 2040, a significant rise from the current 0.5GW level. The formation of the alliance came shortly after the Japanese government approved a draft amendment to existing law to permit the installation of offshore wind farms in its exclusive economic zones (EEZ). The amendment would unleash up to 10 times as large an area for building wind power projects, paving the way for the deployment of stable and large-scale projects in the sea area. On top of this, the government has allocated JPY4bn (USD27.1m) for floating offshore wind technology, in addition to JPY400bn (USD2.7bn)to be raised from green transformation bonds, for building related supply chains. The new consortium members could be eligible for a portion of this funding.

Sources:

https://www.reuters.com/markets/asia/japanese-firms-join-forces-promote-floating-offshore-wind-power-development-2024-03-15/

https://asia.nikkei.com/Business/Energy/Japan-companies-partner-to-take-lead-in-floating-wind-power

https://www.reuters.com/sustainability/climate-energy/japan-expand-offshore-wind-development-into-exclusive-economic-zone-2024-03-12/