Ministry to Work with U.S. Firm on Domestic Production of Wind Turbines; Govt Aims to Boost Wind Power Share in Energy Mix

Yomiuri Shimbun

4 days ago

Yomiuri Shimbun file photo
Wind turbines are seen in Horonobe, Hokkaido, in June 2024
The Economy, Trade and Industry Ministry will establish a framework to produce wind turbines and related equipment in Japan in collaboration with a major U.S. energy firm as part of efforts to expand the share of the nation's power from decarbonized sources, it has been learned.
According to sources, the ministry aims to facilitate technological collaboration between domestic companies and GE Vernova Inc., one of the world's leading energy companies. The sources also said that the framework is for the companies to collaborate in establishing a supply chain for wind turbines, for which Japan mostly relies on imports.
GE Vernova, which was established as a spin-off from General Electric Co., excels particularly in wind power generation, with its equipment generating a quarter of the onshore wind power generation capacity in Japan.
By establishing the framework, the ministry aims to encourage GE Vernova to build a plant in Japan and work with domestic companies to create a supply chain for wind turbines. The ministry will consider providing subsidies to Japanese companies that work with GE Vernova.
The framework also provides for the ministry to cooperate with GE Vernova in carbon dioxide capture and storage, a method for capturing hydrogen, ammonia and carbon dioxide and injecting it deep underground for storage.
GE Vernova hopes that the framework will help the company expand its business in Japan and enter other parts of Asia.
On Tuesday, the U.S. company is scheduled to sign memorandums of understanding with Eurus Energy Holdings Corp., a major wind power generation firm, and Mitsubishi Electric Corp, in accordance with the framework. Under the agreements, Eurus Energy Holdings will set up GE Vernova's wind power generators in Hokkaido and develop a data center that will operate on renewable energy, while Mitsubishi Electric will cooperate with the U.S. firm in the field of semiconductors to develop a more sophisticated power transmission and distribution system.
In its Strategic Energy Plan approved by the Cabinet in February, the government set a target of increasing the share of wind power generation in the country's energy mix from 1.1% in fiscal 2023 to around 4%-8% in fiscal 2040.
However, producing wind turbines domestically has been a challenge for Japan, as the country has no domestic bases for manufacturing the components of large wind turbines, including blades and nacelles, the latter of which are a key part that controls the machine.