Mitsubishi Confident Japan Offshore Wind Will be Profitable

Yuka Obayashi
Thursday, March 17, 2022

Japan's Mitsubishi Corp is confident that the three offshore wind farms it won last year in auctions will be profitable despite the low feed-in tariff prices it bid, the head of its energy solutions unit said on Thursday.

The Japanese government on Dec. 24 selected three consortiums, all led by Mitsubishi, as the operators of offshore wind farms in Akita, northern Japan, and Chiba, near Tokyo, with a total generation capacity of 1.7 gigawatts (GWs). Read full story

Mitsubishi's rivals were stunned by the low tariff prices the trading house's group had proposed - 11.99 yen ($0.1) per kilowatt-hour (kWh), 13.26 yen kWh, and 16.49 yen kWh - far below a ceiling price of 29 yen kWh.

But Yoshihiro Iwasaki, the chief executive of Mitsubishi Corporation Energy Solutions Ltd, said on Thursday: "We will be fine."

"We made our bids by accumulating all the costs from suppliers, after thinking out specifications and construction methods to trim expenses," he told Reuters on the sideline of the Smart Energy Week event.

"That was after we had examined all the risk factors and made thorough discussions with our group's experts at home and abroad."

One executive at an overseas wind power company, who declined to be identified due to sensitivity of the issue, predicted Mitsubishi will likely make losses following its success at the auction.

"The results sent a shockwave to the industry as their prices were so low," he said, speaking on the sidelines of the same event.

Asked whether Mitsubishi will make bids with similar or lower tariff prices in the future tenders, Iwasaki said it will depend on a project as each site has different conditions.

A number of global wind power companies such as Denmark's Orsted and Germany's RWE are keen to enter Japan's market. The government plans to install up to 10 GW of offshore wind capacity by 2030, and up to 45 GW by 2040.

($1 = 118.7500 yen)

(Reuters - Reporting by Yuka Obayashi; Editing by Jan Harvey)

Categories: Energy Renewable Energy Offshore Wind Activity Asia

Related Stories

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Fugro Lands Deepwater Gas Field Job in Southeast Asia

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Mubadala Energy Open to Sell Andaman Gas for Domestic Use

Indonesia's Medco Starts Production at Natuna Sea Fields

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

China Unveils Plans for New Offshore Wind Farms to Tackle Carbon Emissions

Current News

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com