Oil and gas group Equinor has entered the Japanese offshore wind market after forging an alliance with two local heavyweights to bid in the nation’s first wave of large-scale tenders.

The Norwegian group formed a consortium with Japan’s largest power producer JERA and project developer J-Power to bid for projects off Akita Prefecture on the west coast as part of the country’s ‘General Waters’ tendering programme. It specified project ambitions off Noshiro City, Mitane Town, Oga City, and Yurihonjo City.

The trio stressed Japan’s potential for both fixed-bottom and floating offshore wind in a statement announcing the deal.

Equinor – which adds to an Asian offshore wind ambition that already includes South Korea and China – has fixed and floating projects operating in Europe, and is a pioneer in the latter via its Hywind development off Scotland.

JERA – a joint venture established in 2016 by Japanese utility giants TEPCO and Chubu Electric Power that claims to be Japan's largest power generator – also already has offshore wind interests in the UK, as well as Taiwan. Its floating wind ambitions were made clear in June this when it joined sector pioneer Ideol in a separate partnership that seeks to develop 2GW globally.

The third member of the new alliance J-Power is Japan’s second-largest wind power producer via a 530MW onshore turbine fleet. It is already involved in the country’s fledgling offshore wind sector as a partner in the 220MW Hibikinada nearshore project that will become one of Japan’s first commercial offshore wind farms when it enters service in 2022.

The partners said they “will be able to achieve world- class offshore wind power generation projects that are long-term, stable, and efficient.

“The consortium is committed to the long-term operation of these offshore wind power generation projects which are in unprecedented scale in Japan.”

Next big market

Equinor is the latest major foreign energy group to head to Japan, which is seen by many as the world’s next key market for offshore wind, where the industry hopes the General Waters programme will spur 10GW of development over the next decade.

The programme will be based on a series of tenders, the first of which – for a 21MW demonstrator floating project – launched earlier this year .

Global offshore wind leader Orsted, utility giant RWE, and Copenhagen Infrastructure Partners are among the developers to have planted their flags in Japan.

The scale of the nation’s ambition has also attracted key contractors from the European sector to lay the foundations for an offshore wind supply chain, with installation specialists and others forming alliances with local partners to serve the sector as it build momentum over the next few years.

Despite its huge promise, analysts at Fitch Solutions warned that Japan must address obstacles such as lengthy environmental permitting and the need to compete quickly with cheaper solar and thermal power if offshore wind is to achieve its full potential.

Wind

Equinor targets Japan offshore wind debut with JERA and J-Power