Japanese conglomerate Mitsubishi recorded a JPY 52.2 billion ($341 million) hit on three offshore wind farms it is developing in its home market.
Earlier this week, it confirmed that it was reviewing the business plans for the three projects – two off Akita prefecture, and one off Chiba – which have a combined capacity of just over 1.7GW.
Its subsidiaries were selected as lead operators of the projects at auction in December 2021, successfully bidding for power deals worth $100-140/MWh at the time.
Since then, macroeconomic challenges have made project development more difficult, Mitsubishi claimed.
It confirmed the impairment on the projects as it published financial results for the first nine months of its 2024 fiscal year (1 April-31 December 2024).
Mitsubishi reported a net loss of JPY 21.1 billion in its power solutions business, which includes its offshore wind activities.
The wider company – which also has business units active in materials solution, mineral resources and other areas – reported consolidated net income of JPY 827.4 billion for the first nine months of its 2024 financial year.
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