On May 11, 2021, GE Renewable Energy and Toshiba Energy Systems and Solutions Corporation announced that they had signed a strategic partnership agreement to localize critical phases of the manufacturing process of GE’s Haliade-X offshore wind turbine and support its commercialization in Japan.[1] As part of its goal of becoming carbon neutral by 2050, the Japanese government plans to award 10 GW of offshore wind by 2030 with tenders of 1 GW per year. Japan’s plan calls for 30 to 45 GW of offshore wind by 2040, in part by building a competitive domestic supply chain. Japan also plans to set a 60% local content target for offshore wind, which would require domestically procured parts to account for at least 60% of total capital expenditure.

According to the companies, they are well-positioned to contribute to and benefit from the success of offshore wind in Japan. Toshiba has local manufacturing capabilities, a highly skilled workforce, energy domain expertise, and knowledge in the Japanese offshore market. GE has the most powerful offshore wind turbine, engineering and project management experience, and experience in Japan. The companies also stated that the agreement will help GE’s offshore wind technology be more competitive in Japan’s upcoming auctions. Under the strategic partnership, GE will provide the technology, parts, and components for nacelle assembly and support Toshiba in jointly developing a local supply chain and completing assembly of the nacelles. Toshiba will assemble, warehouse, transport the nacelles, provide preventative maintenance services, and have sales and commercial responsibilities in the Japanese market. The companies did not disclose the financial terms and specific details of the partnership.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-and-toshiba-announce-strategic-partnership-agreement-on-offshore-wind-japan