Factbox: Japan aims to become major offshore wind energy producer

Kanadevia

30/06/2023 10:47

By Katya Golubkova and Yuka Obayashi
       TOKYO, June 30 (Reuters) - Japan plans to become one of
the world's top offshore wind energy producers, joining the
likes of China and the United Kingdom, as it makes the
transition to a zero-emission economy while also seeking greater
energy security. 
    Japanese companies have offshore wind assets from Taiwan to
Belgium and UK but are yet to build large-scale farms at home. 
    On Friday, Japan's Ministry of Economy, Trade and Industry
(METI) and Ministry of Land, Infrastructure, Transport and
Tourism (MLIT) finished accepting proposals for the second major
round of offshore wind tenders to build 1.8 gigawatt (GW)
capacity in four areas. 
    Below are main facts about Japan's offshore wind sector. 
    
    CAPACITY 
    Japan had 136 megawatt (MW) of offshore wind capacity
installed as of 2022, a fraction compared to nearly 14 GW in UK
and 31 GW in China, according to Global Wind Energy Council.
    It aims to have 10 GW by 2030 and up to 45 GW operational by
2040 as it wants renewables to provide 36% to 38% of its
electricity mix by the end of this decade from around 20% now
and has targeted becoming carbon neutral by 2050. 
    A Marubeni-led consortium  8002.T  launched Japan's first
large-scale commercial offshore wind operations at Noshiro Port
(84 MW) and Akita Port (55 MW) in late 2022 and early 2023. 
    Marubeni won these projects with the feed-in tariff program
for renewable energy, before the government enforced a new law
in 2019 to enhance development of offshore wind farms outside of
port areas, introducing a public auction scheme.
        MHI Vestas Offshore Wind, a joint venture between Danish
manufacture Vestas Wind Systems A/S  VWS.CO  and Mitsubishi
Heavy Industries  7011.T , provided bottom-fixed turbines for
Marubeni's farms. 
            
    FIRST ROUND 
    A Mitsubishi-led consortiums  8058.T  won all three offshore
wind farms auctions in 2021 in Akita and Chiba prefectures, with
combined capacity of 1.7 GW and target start-up of 2028-2030.
All three will have bottom-fixed structures. 
    General Electric  GE.N  will manufacture a total of 134 wind
turbines with 13 MW capacity each, which Japan's Toshiba will
then assemble and provide maintenance for.
        
    SECOND ROUND
    The government's auction for another 1.8 GW of capacity,
conducted over six months, concluded on June 30. The winners
will be announced by the end of March 2024, though they could be
named as early as December. 
    It was auctioning four areas, all with bottom-fixed
structures, in total: 
    - Happo Town and Noshiro City in Akita Prefecture (356 MW)  
    - Oga City, Katagami City and Akita City in Akita Prefecture
(336 MW) 
    - Murakami City and Tainai City in Niigata Prefecture (700
MW)
    - Enoshima, Saikai City in Nagasaki Prefecture (424 MW)
    
    Under the revised rules, companies are not allowed to
disclose whether they intend to bid.
    JERA, Japan's top power generator, has said it was
conducting environmental assessment procedures for
Oga-Katagami-Akita project and Happo-Noshiro project.
    Itochu Corp  8001.T , Tokyo Gas Co Ltd  9531.T  and other
companies are considering bidding for some of the projects,
according to the Nikkei business daily.    
    
    FLOATING OFFSHORE
    In 2021, the government selected a consortium of six
companies led by Toda Corporation to build the 16.8 MW Goto
floating offshore wind farm in Nagasaki prefecture. It was the
only bidder in a public auction for the small project. 
    Japan is working to create a new roadmap for floating
offshore wind power by the end of March 2024.
    
    EXPERIENCE 
    Foreign companies are likely to need Japanese partners in
order to participate in auctions as they would need to discuss
plans with local authorities, fishermen and residents, whose
opposition led to some wind power projects being scrapped in the
past.
    The UK wants to take part in developing Japan's offshore
wind power via options ranging from the participation of its
energy companies to providing financing and insurance, Energy
Security Secretary Grant Shapps told Reuters in April.
    At the time of the first round, a number of foreign
companies, including Denmark's Orsted  ORSTED.CO , Germany's RWE
 RWEG.DE  and Norway's Equinor  EQNR.OL , showed interest in
entering the Japanese market.

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by
Simon Cameron-Moore)
 ((ekaterina.golubkova@thomsonreuters.com;))