Equinor Scuttles Japanese Offshore Wind Plan

Equinor has decided to end its offshore wind business activities in Japan, where it has been since 2018 but has failed to win any leases in successive auctions, and close its Tokyo office by the end of 2026.

Orsted, the world's largest offshore wind developer, exited Japan in 2024 and Equinor has previously scaled back offshore wind development in markets including Vietnam, Spain, Portugal and France, citing rising costs.

Offshore wind projects globally have been hit by rising costs and persistent supply chain constraints.

"This decision reflects a reassessment of Equinor's strategic direction, with a strengthened focus on integrated power markets," majority state-owned energy group Equinor said in a statement published on its website.

Mitsubishi Corp-led consortia also pulled out of Japan's first three offshore wind projects last year, citing surging costs, in a setback for Tokyo’s efforts to reduce its reliance on energy imports.

Japan's biggest power generator, JERA, however, started construction earlier this year on an offshore wind project in Akita, northern Japan.

Equinor, whose core business remains oil and gas, further scaled back its renewables ambitions on June 16, scrapping its 2030 installed capacity target.

It said it would focus on expanding its integrated power business, combining renewables with gas-to-power generation and other sources.

In May, Equinor cancelled its Bandibuli floating offshore wind project off South Korea, but remains a partner in the Donghae 1 project.

"We are still reviewing our offshore wind presence in South Korea and will provide an update at a later stage," an Equinor spokesperson said on Friday.

(Reuters)