Tokyo, Aug. 26 (Jiji Press)—Mitsubishi Corp. is planning to pull out of offshore wind power projects in three areas in Japan because of higher-than-expected costs, it was learned Tuesday.

Construction costs are ballooning due to soaring material prices brought on by the weaker yen and rising labor costs, making it difficult for the major Japanese trader to secure profits from the projects, informed sources said.

As the Japanese government considers the promotion of offshore wind power generation as key in the country’s decarbonization efforts, the company’s planned withdrawal from the government-led projects may push the state to review its energy strategy.

In 2021, a consortium led by Mitsubishi successfully bid for the projects to build wind power plants in a total of three areas off the northeastern prefecture of Akita and Chiba Prefecture, east of Tokyo.

Mitsubishi were eyeing bottom-fixed offshore wind power generation, in which the turbine’s foundation is attached to the seabed. The power plants were supposed to start operations in stages from 2028.

[Copyright The Jiji Press, Ltd.]