BP Exit to Add Strain on Japan Offshore Wind as Costs Climb

Tokyo, July 29 (Jiji Press)--Headwinds are intensifying for Japan's offshore wind power sector, with British oil giant BP PLC seen exiting a major project off northeastern Japan.

Offshore wind power is regarded as a key element in the country's renewable energy strategy, but soaring construction costs driven by global inflation are eroding project viability.

BP has apparently decided to quit the project won in December 2024 by a consortium that includes trading house Marubeni Corp., Kansai Electric Power Co. and Tokyo Gas Co., in addition to BP.

Under the project, an offshore wind farm will be established off the Sea of Japan coast in the town of Yuza, Yamagata Prefecture.

The project will continue with remaining members. The prospect of BP's departure, however, has unsettled participants in other offshore wind projects, prompting concerns that any of their partners may follow suit.

[Copyright The Jiji Press, Ltd.]