Japan-UK Offshore Wind Deal Promises £2 trillion Investment as Mitsubishi Exits Domestic Projects

At a summit on June 14, the Japanese and British governments announced a cooperation agreement on offshore wind. Four Japanese firms will participate in a UK programme aiming to invest up to 1.9 trillion yen (about £2 billion) over the next decade, focusing on turbine supply, supply‑chain development and technology sharing.

Meanwhile, Mitsubishi Corp disclosed the withdrawal from three Japanese offshore‑wind sites – Choshi, Noshiro and Yurihonjo – after a 2021 bid that secured the areas at very low prices (¥11.99‑¥16.49/kWh). Rising material and construction costs, a weaker yen, higher interest rates and permitting delays turned the projects unprofitable, leading to a ¥50 billion impairment and the decision to exit.

The juxtaposition highlights a shift in Japanese strategy: abandoning costly domestic offshore‑wind projects while committing substantial capital to the more mature UK market, which is also grappling with higher price caps and occasional “wind‑drought” periods.