Nippon Steel and Vestas Wind Systems, a Danish wind turbine manufacturer, signed a memorandum of cooperation on Wednesday. The agreement outlines the supply of steel for Vestas wind towers in Europe, Asia, and Japan, according to Japan's Industry Ministry.

The agreement is part of a larger push by Japan's Ministry of Economy, Trade and Industry to strengthen the supply chains for wind power generation in a country where renewables play a key role in reducing imports and dependence on fossil fuels.

Offshore wind is an important part of Japan's strategy for renewable energy, but it remains heavily dependent on imported components and wind turbines.

Vestas is involved in a number contracts in Japan. One of these is for the construction of a 375-megawatt off-shore wind farm in Akita Prefecture, northern Japan.

METI announced in June a framework of cooperation with Siemens Gamesa Renewable Energy to develop offshore wind. Siemens Gamesa (the wind turbine division of Siemens Energy) has agreed a deal for the supply of magnets used in wind turbines with TDK, a Japanese electronic parts manufacturer.

METI has launched a similar framework in collaboration with GE Vernova - a major U.S. company that manufactures energy equipment - to promote public/private cooperation, among others, on wind power, ammonia and hydrogen.

Japan wants to reach 45 gigawatts in offshore wind power by 2040, to reduce its dependence on coal and gas imported for electricity generation. The plans of the Japanese government have been stalled due to high costs and delays, despite three rounds of major auctions. (Reporting and editing by Elaine Hardcastle; Editing by Katya Glubkova)

(source: Reuters)