Mitsubishi to exit Japan offshore wind sites due to rising costs

[Offshore wind farm, North Sea]
Mischa Keijser/Cultura via Getty Images

Mitsubishi (OTCPK:MSBHF [https://seekingalpha.com/symbol/MSBHF]) said Wednesday it will withdraw [https://www.mitsubishicorp.com/jp/en/news/release/2025/20250827002.html] from three Japanese offshore wind power projects because of soaring costs, confirming earlier speculation, dealing a blow to Japan's attempts to reduce its dependence on imported fuel.

"Tight supply chains, inflation, exchange rates, and rising interest rates" have changed the outlook for offshore wind since the Mitsubishi-led (OTCPK:MSBHF [https://seekingalpha.com/symbol/MSBHF]) consortium won the sites in Chiba and Akita prefectures in a 2021 government auction , the company said.

"We examined every possible measure," Mitsubishi (OTCPK:MSBHF [https://seekingalpha.com/symbol/MSBHF]) CEO Katsuya Nakanishi said [https://www.bloomberg.com/news/articles/2025-08-27/mitsubishi-withdraws-from-three-offshore-wind-projects-in-japan] at a press conference. "Even so, construction costs have more than doubled from what we anticipated when we first placed our bid."

Mitsubishi (OTCPK:MSBHF [https://seekingalpha.com/symbol/MSBHF]) said most of the losses caused by exiting the three projects already have been included in its financial results, with additional losses expected to be lifted; the company recorded a ¥52.2B ($352M) loss on its domestic offshore wind business in February.

The three wind farms had projected capacity of 1.76 GW and were set to start operations around 2028-30.

ETF: (NYSEARCA:FAN [https://seekingalpha.com/symbol/FAN])

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