METI supports domestic production of floating offshore wind equipment, mass production investment
Nippon Steel Engineering and others selected for GX supply chain construction support project
2025/01/29 09:54
Jacket foundations being manufactured at the Wakamatsu Factory for the Ishikari Bay New Port offshore wind power plant.
(Source: Nippon Steel Engineering)
On January 24, the Ministry of Economy, Trade and Industry announced the recipients of the second public call for applications for the "GX Supply Chain Construction Support Project," which subsidizes capital investment related to the production of GX (Green Transformation) products, in the "floating and other offshore wind power generation facilities" category.
The project aims to be the first in the world to establish a domestic production system for equipment products for offshore wind power generation facilities, such as water electrolysis equipment, fuel cells, perovskite solar cells, and floating types, which are essential for achieving carbon neutrality. The winners of the first public call for proposals for water electrolysis equipment and fuel cells were announced on December 18, 2024, and the winners of the second public call for proposals for perovskite solar cells were announced on December 25 of the same year.
Of the second public offering announced this time, the selected businesses and the maximum grant amounts in the floating and other offshore wind power generation equipment sector are as follows: Toshiba Energy Systems, which assembles offshore wind turbine nacelles, will receive 2,259,231,666 yen; Oshima Shipbuilding, which handles floating foundations, will receive 4,420,749,333 yen; Naroc, which handles mooring ropes, will receive 838,145,250 yen; Nippon Steel Engineering, which manufactures floating foundations, will receive 4,265,600,000 yen; and Komai Haltec, which manufactures tower parts, will receive 1,013,333,333 yen.
Among the selected companies, Nippon Steel Engineering will invest in equipment, mainly one of the largest cranes in Japan, at its Wakamatsu plant in Kitakyushu. Utilizing the large marine steel structure manufacturing yard owned by the plant, the company will set up a production system for floating foundations, which is expected to produce 20 to 30 units per year by 2030, regardless of type or structure ( related article: Construction begins on offshore wind power in Hibikinada, Kitakyushu City's "next move" in renewable energy strategy ).
The subsidy covers the acquisition costs of facilities, machinery, and buildings used in factories that manufacture the products (including new construction, rebuilding, and renovation), as well as the purchase of systems. The subsidy rate is up to one-third for large companies and up to one-half for small and medium-sized enterprises. The budget amount is 421.2 billion yen (including national treasury debt burden until fiscal 2028).
