Mitsubishi Corp on Monday said it is reviewing how to proceed with its offshore wind projects in Japan given a "significantly changed" business environment, showing that the country is not immune to rising costs across offshore wind projects globally.

Projects have been affected by inflation, depreciation of the yen, tight supply chains and high interest rates

Soaring costs in recent years have upended the investment plans of offshore wind developers globally. Denmark’s Orsted A/S recorded a $1.7 billion hit on its 2024 earnings on higher building costs, while BP merged its business with Japan’s Jera to cut exposure to the troubled sector.

Mitsubishi Corp said on Monday it was reviewing how to proceed with the development of its offshore wind projects in Japan, citing a "significantly changed" business environment, including inflation and a weaker yen.