Nagashima Ohno & Tsunematsu | View firm profile
Introduction
The ongoing volatility in the Middle East, exacerbated by the 2026 blockade of the Strait of Hormuz, has transitioned renewable energy from a long-term target into an immediate national security issue. Floating offshore wind can provide the necessary scale in renewable energy by unlocking the power potential of deeper waters. While traditional fixed bottom offshore wind projects are geographically limited to shallow coastal shelves, floating offshore wind projects can be deployed in deeper waters where wind speeds are significantly higher and more consistent, leading to a higher capacity factor and more reliable electricity generation. Furthermore, by moving projects further offshore, developers can mitigate the common “not in my backyard” (NIMBY) challenges associated with visual landscape intrusion and reduce interference with near-shore activities such as fishing and shipping.
Japan has a huge potential for floating offshore wind due to its geography: an archipelago with a narrow continental shelf that drops off rapidly into deep water. Approximately 80% of Japan’s offshore wind potential is in deeper waters, where only floating offshore wind is viable. Furthermore, Japan possesses the sixth-largest Exclusive Economic Zone (EEZ) in the world – a maritime territory roughly 12 times larger than its landmass – which is particularly significant following the 2025 legislative expansions allowing its development.
Europe, however, is currently the leading region for commercial-scale floating offshore wind projects. Several smaller operational commercial projects have paved the way for a pipeline of large scale commercial projects, including the 3,600 MW Ossian and the combined 1,900 MW Cenos and Green Volt projects in the UK, and the 1,500 MW Utsira Nord project in Norway. To reach the industrial scale required for cost-competitiveness, European governments have played a central role, establishing robust policy and regulatory frameworks that provide the long-term certainty necessary to attract significant private investment and debt finance.
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[Authors]
Kiyoshi Honda, Partner
Tak Matsuda