Publication date: Feb 8, 2025 Government Awards Subsidies to Help Establish Floating Offshore Wind Supply Chain
Government Awards Subsidies to Help Establish Floating Offshore Wind Supply Chain
The Ministry of Economy, Trade, and Industry (METI) announced that five companies, including Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) and Nippon Steel Engineering, have been selected for the second round of the “GX (Green Transformation) Supply Chain Construction Support Project” (floating offshore wind power generation facilities) in FY2024. The maximum subsidy amount is approximately JPY 12.6 billion. Toshiba ESS will receive up to JPY 2.2 billion for the production of offshore wind turbine nacelles, and Nippon Steel Engineering will receive JPY 4.2 billion for the production of floating foundations.
Investment Plans and Broader GX Supply Chain Project Goals
The total investment undertaken by Toshiba ESS is expected to be approximately JPY 6.7 billion, and Nippon Steel Engineering’s work on foundations will total about JPY 12.7 billion.
- Nippon Steel will build one of the largest cranes in Japan at the large offshore steel structure fabrication yard at its Wakamatsu Plant (Kitakyushu City).
- It will also establish a world-class system capable of producing 20 to 30 floating foundations per year by 2030.
In addition to these two companies, Oshima Shipbuilding, Naroc, and Komai Haltec will receive subsidies.
The GX Supply Chain Construction Support Project is a government initiative that aims to establish a world-leading domestic manufacturing supply chain in the GX sector by utilizing the existing manufacturing supply chain and technology infrastructure, involving national SMEs. In addition to floating offshore wind, areas such as water electrolyzers, fuel cells and perovskite solar cells are also eligible for subsidies.
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