JERA, Japan's largest power generator, has started?construction on its offshore wind project at Akita in?northern Japan. The project is scheduled to start up by 2028, according to Hisahide OKuda, the president of JERA.

The move comes despite soaring construction and material costs and the withdrawal last year by a group led by Mitsubishi Corp from three offshore projects awarded in 2021.

JERA was awarded a government bid in 2023 for the development of a 315 megawatt offshore wind farm at Oga, Katagami and Akita with Electric Power Development (EPD),?Itochu, and Tohoku Electric Power. JERA, Tohoku Electric, and Green Power Investment also won a 615 MW project in 2024 off the coast of Aomori Prefecture, northern Japan.

Okuda said at a press conference that "costs have risen significantly, creating a challenging business environment."

Okuda stated that the first JERA-led group has signed a contract with Vestas to purchase turbines for Akita, and Kajima will be handling foundation work.

JERA, Japan’s largest LNG buyer, has signed a contract with QatarEnergy – one of the biggest LNG suppliers in the world – to purchase 3 million metric tons per year of super-cooled fuel for the next 27 years.

The agreement follows four supply agreements signed in the past year to diversify its global portfolio.

Okuda stated that U.S. Liquefied Natural Gas (LNG) is a tradable product and has a destination flexibility, which makes it an ideal balancing energy resource for renewables.

Qatar has an overwhelmingly strong emergency response capability, even though it is less flexible than other projects.

Okuda stated, "Incorporating these two into our procurement strategy significantly improves our ability meet the rising electricity demand and manage renewable fluctuations while ensuring economic security." Reporting by Yuka Obaashi. Mark Potter (Editing)

(source: Reuters)