Japan’s offshore wind sector is facing another major challenge. British energy company BP is considering withdrawing from the offshore wind farm project off the coast of Yamagata Prefecture, adding further pressure to an industry already struggling with rising costs and the departure of major international investors.
According to Japanese media reports, BP has informed its partners of its intention to leave the consortium led by Marubeni. The partnership also includes Kansai Electric Power and Tokyo Gas. Despite BP’s potential exit, Marubeni has confirmed that it intends to continue developing the project.
The project involves the construction of a 450 MW fixed-bottom offshore wind farm off the coast of Yuza, Yamagata Prefecture, with commercial operations scheduled to begin in 2030.
BP’s decision is reportedly driven by concerns over the project’s economic viability as capital costs continue to rise and market conditions become more challenging. These issues have already affected Japan’s offshore wind industry. In 2025, Mitsubishi Corporation and its partners withdrew from three offshore wind projects in Chiba and Akita prefectures, citing sharply increasing construction costs.
The sector also suffered another setback in late June when Equinor announced it would end its offshore wind business in Japan and close its Tokyo office by the end of 2026.
The growing number of project withdrawals highlights the challenges Japan faces in expanding its renewable energy capacity through offshore wind. For investors, construction costs, project profitability, and the stability of government support remain the key factors shaping future investment decisions.
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