Norway's Equinor ends plans for offshore wind in Japan
Equinor's Strategic Shift and Offshore Wind Market Challenges
Equinor's Exit from Japan
OSLO/TOKYO, June 26 (Reuters) - Norway's Equinor said it 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.
Context: Other Industry Exits and Market Pressures
Global Offshore Wind Developers Pull Back
Denmark's 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.
Rising Costs and Supply Chain Constraints
Offshore wind projects globally have been hit by rising costs and persistent supply chain constraints.
Equinor's New Strategic Direction
Focus on Integrated Power Markets
"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.
Other Industry Developments in Japan
Mitsubishi Corp-led Consortia Withdrawals
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.
JERA's Offshore Wind Project
Japan's biggest power generator, JERA, however, started construction earlier this year on an offshore wind project in Akita, northern Japan.
Equinor's Renewables and Power Business Outlook
Scaling Back Renewables Ambitions
Equinor, whose core business remains oil and gas, further scaled back its renewables ambitions on June 16, scrapping its 2030 installed capacity target.
Focus on Integrated Power Business
It said it would focus on expanding its integrated power business, combining renewables with gas-to-power generation and other sources.
Equinor's Position in South Korea
Bandibuli Project Cancellation
In May, Equinor cancelled its Bandibuli floating offshore wind project off South Korea, but remains a partner in the Donghae 1 project.
Future Plans in South Korea
"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.
(Reporting by Nerijus Adomaitis in Oslo and Kantaro Komiya in Tokyo, editing by Essi Lehto and Alexander Smith)
