Mitsubishi pulls out of projects in Japan because of high inflation and interest rates and supply problems

Surging costs are making offshore wind projects unaffordable, industrial giant Mitsubishi has warned.

The Japanese company on Wednesday pulled out of a trio of major schemes in its home country, blaming inflation, higher interest rates and stretched supply chains. The Telegraph has the story.

Mitsubishi had originally committed to the projects in late 2021 but said the business environment had “significantly changed” since then.

The company added: “We have determined that establishing a viable business plan is not feasible given the current conditions.”

It is the latest blow to the global offshore wind industry as companies battle financial and political turbulence.

In the US, Donald Trump has thrown several projects into disarray. The US president has signalled that schemes proposed by the likes of Danish giant Ørsted and Norway’s Equinor will not be allowed to go ahead.

Meanwhile, European wind developers have warned that they cannot push forward with green energy projects without subsidy support from governments.

Read the full story here.