Japan to invest £9bn in UK floating offshore wind sector

The United Kingdom and Japan have formalised a nine billion pound trade agreement that will direct Japanese state investment into the British floating offshore wind industry. Michael Shanks, the energy minister, announced the deal after meeting with Takagi Kei, Japan’s minister of economy, trade and industry. The agreement is designed to channel funds into the UK offshore wind sector, with the government asserting that the collaboration will assist in reducing high energy bills for consumers.

The investment forms part of the Offshore Wind Compact signed between the two nations in June. It will be developed in partnership with GB Energy, the UK’s state-owned energy company. Officials anticipate that the scheme will generate tens of thousands of new positions and contribute eighteen billion pounds to the British economy. This addition is expected to augment the existing one hundred and forty billion pound economic relationship between the United Kingdom and Japan.

The collaboration will encompass co-investment in offshore wind projects, joint efforts in testing and demonstrating floating and deepwater technology, and the development of a domestic supply chain. The allocated funds are expected to be invested in 5.9 gigawatts of floating offshore wind farms. These projects include schemes that already feature Japanese investors, such as the 3.6 gigawatt Ossian project involving SSE, CIP and Marubeni, the 560 megawatt Green Volt scheme backed by Tepco, and the 100 megawatt Erebus project supported by TotalEnergies and Simply Blue Group in the Celtic Sea.

Dan McGrail, chief executive of GB Energy, welcomed the investment, stating that combining expertise with Japan would strengthen energy security. He noted that the UK possesses the skills and ambition to build a thriving deepwater and floating offshore wind sector. McGrail added that this international industrial strategy would create jobs and deliver benefits to the UK economy. Shanks emphasised that building homegrown power is essential for strengthening energy security and tackling the root cause of high bills, bringing together British expertise and Japanese industrial strength to drive growth.

The agreement follows significant recent investments by Japanese conglomerates in Scottish waters. Sumitomo Electric’s chief executive, Masayoshi Matsumoto, confirmed that production would begin at a 350 million pound cable factory in Nigg on the Cromarty Firth in July. Additionally, Mitsui has partnered with the Maraen consortium, investing 30 million pounds in its UK base at the Port of Nigg. The government stated that the latest agreement combines UK market frameworks with Japanese industrial capability and manufacturing to pave the way for the large-scale commercial deployment of fixed bottom, floating and deepwater offshore wind.