How Canada’s innovation minister is bracing for a US trade war

Story by Steven Overly
• POLITICO

Canada has a warning for President-elect Donald Trump as he looks to launch a trade war with the U.S.’s northern neighbor: Hurting us will help China.

“If you say no to Canada, you're basically saying yes to China when it comes to strategic supply chains,” François-Philippe Champagne, Canada’s minister of innovation, science and industry, said on today’s POLITICO Tech podcast. “I don't think that's what the American people would want.”

Champagne argues that the two nation’s fortunes are inextricably intertwined — after all, they are each other's largest trading partner — and that the U.S. relies heavily on Canada for economic essentials like critical minerals and oil. Plus, the countries have common ambitions in areas like artificial intelligence and nuclear energy where Champagne says they can better compete against China together.

But Champagne’s case has done little to sway Trump so far. Trump has threatened to impose a 25 percent tariff on imports from Canada and Mexico unless they do more to secure the U.S. border from immigrants and drugs. And recently, he has lobbed online insults at Prime Minister Justin Trudeau and at Canada itself, disparagingly referring to it as the 51st state.

“You have to take these comments with a grain of salt, I would say,” Champagne said. “The good thing that I see with [the] president-elect is he talks a lot about Canada, which is a good thing. That means that we matter.”

Related video: Canada: Trudeau Unveils High-Tech Border Plan Amid Trump's Tariff Threats | Firstpost America (Firstpost)

WGRZ-TV Buffalo  The trade issues between the U.S. and Canadian tariffs

2:15

cbc.ca  Premiers discuss tariff threat response in wake of Freeland’s resignation

2:04

Still, the tensions over Trump have caused waves in Ottawa. Earlier this week, Canada’s deputy prime minister and finance minister Chrystia Freeland resigned over a split with Trudeau on how to brace for the coming conflict.

POLITICO Tech host Steven Overly spoke with Champagne about the political fallout in Ottawa, whether he still supports Trudeau, and how Canada is bracing for Trump’s return. Listen to the full interview.

Chile files four environmental charges against Anglo American’s Los Bronces copper mine

Reuters | December 23, 2024 | 

Near the tailings facility for Los Bronces copper mine in Chile. (Image courtesy of Anglo American | Flickr.)

Chile’s environmental regulator has filed four charges against the major Los Bronces copper mine, controlled by Anglo American, for noncompliance with environmental permits, the agency said on Monday.


The charges could carry a fine of nearly 17 billion pesos ($17.17 million), according to the Superintendency of the Environment, or SMA.

Los Bronces is one of Chile’s biggest copper mines with output of 255,000 metric tons last year, as well as a key project for Anglo American, which has been a takeover target of larger rival BHP.

Anglo American said in a statement that it was analyzing the accusations to determine its next steps.

One of the charges was deemed “very serious,” the highest of three offense levels, for noncompliance dating back to a 2014 sanction.

At the time, the SMA found that Anglo American Sur, the local unit that operates Los Bronces, failed to resolve acid drainage at the Esteriles Donoso tailings deposit, designed to hold mine waste.


“The company has not implemented a definitive solution … it constitutes a repetition of acts previously sanctioned,” the SMA said.

The tailings deposit is not currently in use, Anglo American said, stating that in October it submitted a request for an environmental permit to fix the issue.

The regulator also filed two charges in the mid-level “serious” category. One was against Anglo American for not designing a mitigation system for acid waters collected downstream of the Esteriles deposit, and another for not taking measures to control seepage in Las Tortolas tailings dam.

The miner said it is “working to optimize the hydraulic barrier approved by the regulator to improve seepage control.”

The SMA also found that Anglo American had not reported to the agency complete data related to water and tailings, a violation it categorized as “minor.”

The miner has 15 days to present a mitigation program, and 22 days to contest the charges.

The SMA earlier this month also filed three charges against Anglo American for violations at its El Soldado copper mine in the Valparaiso region.

($1 = 989.9000 Chilean pesos)

(By Daina Beth Solomon and Fabian Cambero; Editing by Kylie Madry and Matthew Lewis)

CATL to seek Hong Kong listing

Reuters | December 26, 2024 | 

CATL headquarters (Image from CATL)

Chinese battery manufacturer CATL said on Thursday it plans to seek a listing in Hong Kong, a Shenzhen Stock Exchange filing showed.


CATL plans to issue offshore H-shares and apply for a listing on the main board of the Hong Kong Stock Exchange, it said in the filing.


CATL’s board has approved the plan, but the proposal is pending approval from regulators, including the China Securities Regulatory Commission, the company said.

Other details of the plan have yet to be finalized, it added.

The move is aimed at “further promoting the company’s global strategic layout” and improving its competitiveness, it said.

CATL, the world’s top battery maker, has a global market share of roughly 37% in electric vehicle batteries, according to battery market tracker SNE Research.

The company has been weathering the impact of an ongoing price war in China’s EV sector, with an increase in third-quarter profit growth.

(By Ethan Wang, Yukun Zhang, Zhang Yan and Brenda Goh; Editing by Louise Heavens)

Canada’s Seymour lithium project secures $69.5m in financing from EDC

ALL CAPITALI$M IS STATE CAPITALI$M

The non-binding letter of interest (LOI) could lead to a direct lending debt funding package of up to C$100m ($69.5m) 

Credit: BJP7images / Shutterstock. · Mining Technology · BJP7images / Shutterstock.

GlobalData
Mon, December 23, 2024 


Green Technology Metals (GTM) has received a non-binding letter of interest (LOI) from Export Development Canada (EDC) to finance the company’s Seymour lithium project in northwestern Ontario, Canada.

The LOI could lead to a direct lending debt funding package of up to C$100m ($69.5m), bolstering the project's development within Canada's critical minerals supply chain.


GTM has been in discussions with EDC since September 2024, providing key project details and preliminary financial models.

The project’s permitting approvals and final investment decision are expected to be completed in 2025.

The project is expected to start production in 2026 as Ontario’s first mine for battery metal.

Green Technology Metals managing director Cameron Henry said: “This marks the first step in our financing strategy for the Seymour project development and we’re pleased to have achieved this milestone in 2024. EDC’s support potentially increases sourcing flexibility, allows greater access to low-cost direct lending and is non-dilutive to GT1 shareholders.

“We continue to engage with global commercial lenders as part of our broader financing efforts, but the strong indication of interest from EDC validates the robustness of the Seymour Project and further reinforces our strategy to become Ontario’s first lithium producer.”

EDC's support is expected to offer flexible sourcing options and access to low-cost lending, and will not dilute the value for current shareholders.


The financing from EDC is subject to a thorough due diligence process, internal approvals, and standard project finance conditions, including an environmental and social review in line with EDC’s framework.

Following the appointment of financial adviser Endeavour Financial, the Seymour Project has attracted global commercial lenders, enhancing the project's financial structure.

As a financial Crown corporation, EDC focuses on financing solutions for Canadian exporters and has completed over 540 transactions across various sectors, including mining.

"Canada’s Seymour lithium project secures $69.5m in financing from EDC" was originally created and published by Mining Technology, a GlobalData owned brand.

Unlocking shared value for our global energy transition: 3 proven models for LSM-ASM collaboration

James McQuilken - Pact | December 26, 2024 | 

Artisanal miners in Sierra Leone. ( Credit: Pact/ Jorden de Haan.)

Our global energy transition is driving a surge in both large-scale (LSM) and artisanal and small-scale mining (ASM) to meet the soaring demand for critical materials like lithium, cobalt, copper and rare earths. By 2050, up to 6.5 billion tonnes of these resources will be needed — despite efforts to reduce reliance through recycling and innovation — to support technologies like wind turbines, solar panels and electric vehicle batteries.


An increase in mining these critical minerals is necessary to meet the Paris Agreement’s target to limit global warming to below 2oC and ideally 1.5oC and mitigate the most severe and disproportionate impacts on the most marginalized and poor in our society. And it is not just raw materials.

Achieving the Paris Agreement’s climate goals requires not only more mining but also a 175% increase in land use for bioenergy, wind, solar and mining. A 57% rise in water demand for non-fossil fuel energy systems such as nuclear power and hydrogen production, carbon capture and storage and cleaning solar panels is also needed.

As metal prices soar, mining expands into new frontiers, and climate-pressures on land and water use increase, more communities and Indigenous peoples will be impacted as people are attracted to ASM as a vital lifeline in times of economic turmoil. The recent crisis in South Africa highlights this.

In October, hundreds of informal miners, including undocumented migrants stating they had been forced into labor by criminal gangs, became trapped after entering a disused LSM tunnel in search of gold. They remained underground for over two months, fearing arrest or deportation, with police restricting food and water access, despite a court order. After a tense stand-off, more than 150 miners were eventually rescued and, tragically, three bodies recovered.

While ASM remains a largely informal activity driven by poverty, unsupported and vilified leading it open to capture by nefarious actors, these types of LSM-ASM crises are likely to continue. The need for positive, mutually beneficial community-mining relationships is more critical than ever. This is where the Voluntary Principles on Security and Human Rights and partnerships between LSM-ASM and communities come into their own.

Established in 2000, the Voluntary Principles provide a framework for how companies and governments should conduct their security operations at mining, oil and gas sites while respecting human rights. They also support wider industry sustainability aims as global stakeholders demand more tangible community-level impact from mining companies with community engagement shifting from corporate social responsibility “nice-to-haves” to a core business imperative.

To bridge this gap, below are three examples of proven LSM-ASM and community engagement and formalization models that can be utilized in the responsible pursuit of clean energy materials.

Model 1: Direct mining support

One of the most effective partnership models is direct mining support from LSM to ASM operations. This engagement often focuses on formalizing ASM activities and can take various forms—from ceding land, licenses and geological data to ASM miners to providing technical support for safer, more productive and environmentally sound mining practices. Financial partnerships, such as equipment loans and offtake agreements, can also ensure that ASM miners can operate sustainably.

In some partnerships, ASM miners are permitted to operate on LSM concessions. This requires a strong legal framework that allows for ASM’s participation, financial sustainability and supply chain due diligence to meet global responsible mining standards. In other cases, ASM operates outside of LSM concessions. For these partnerships to work, geological deposits must be available for long-term ASM activity with data made available to enable miners to target areas and obtain financing for operations. Existing ASM pre-financing relationships must also be understood as miners are often required to sell minerals back to investors at reduced prices in return for ongoing capital investment. This approach ensures miners can engage directly with LSM, avoiding conflicts and ensuring that they are not beholden to other buyers.

The Mutoshi Cobalt Pilot from 2018 to 2020 in the Democratic Republic of Congo (DRC) exemplifies the benefits of LSM-ASM partnerships. Trafigura and Chemaf collaborated with local ASM cooperative COMIAKOL, supported by international NGO Pact, to provide site access and technical support, improving working conditions and increasing production. Key outcomes included six million work hours with no fatalities, improved working conditions for 70% of participants and enhanced roles and safety for women miners. This pilot underscores the power of LSM-ASM partnerships when all stakeholders align around responsible mining goals.

Model 2: Complementary livelihoods

Complementary livelihood models focus on creating or enhancing non-mining job opportunities for local communities. These programs aim to reduce dependence on ASM while providing stable, complementary income sources. Livelihoods must be relevant to local communities, offer comparable financial returns to ASM or have better working conditions and social acceptance.

As local economies around LSM sites grow, new opportunities for ecosystem services — such as waste collection, land restoration and renewable energy — can emerge. These activities not only reduce informal ASM but also contribute to more sustainable post-mining communities.

At Tanzania’s Geita Gold Mine, security reforms rooted in Voluntary Principles best practices have created livelihoods for over 900 people while improving LSM-ASM relationships. The community policing program has recruited and trained 957 unarmed community police across 32 localities in and around Geita Mine. The mine, in conjunction with the Tanzania Police Force, has built skills, fostered career growth, and curbed collusion and corruption. The community police, working on 12-month terms as agreed with the local community leadership forums, not only benefits the respective communities economically, but also act as the first line of defense, protecting the Geita forest reserve and reducing crime incidents in the Geita Mine area like trespassing, burglary, assault and rape, among others. This innovative model demonstrates how inclusive security can benefit both communities and mining operations.

Model 3: Community development

Community development is a vital component of any successful LSM-ASM partnership. These initiatives can improve working conditions, health and safety standards, and gender equality within ASM communities. LSM can also support broader community development efforts, such as renewable energy access, environmental protection and education, which contribute to overall well-being and sustainability.

In Rwanda, Trinity Metals has placed community development at the core of its operations, doubling its workforce to 5,000 since consolidating three small-scale mines in 2022. With 99% of employees Rwandan and 75% in leadership roles, the company provides livelihoods while boosting tin, tungsten and tantalum production through mechanization and professionalization. Collaborating with local government, Trinity co-funds development projects, including building a bus station, providing medical insurance for 2,000 vulnerable households and supporting farmers’ cooperatives on the concession to improve nutrition and provide food to the mine’s canteen.

The company has also recruited 150 previously informal small-scale miners and unlicensed mineral traders that were operating unauthorized on their concession, integrating them into its workforce and fostering long-term community growth.
Conclusion

The collaboration between LSM and ASM has proven to be a powerful tool for fostering responsible mining practices and driving community-level impact. Practical partnership models, such as direct mining support, complementary livelihoods and community development, offer a path forward for companies looking to meet growing ESG demands while ensuring sustainable, inclusive growth.

As global demand for energy transition minerals and precious metals increases, the need for strong LSM-ASM partnerships will only become more pressing. By working together, LSM and ASM can contribute to local prosperity, national development and global sustainability, creating a mining sector that benefits everyone.

James McQuilken is director of responsible mining at Pact.

Congo frees most of Chinese men held for illegal mining

Reuters | December 26, 2024 | 

Stock image.

Democratic Republic of Congo has freed 14 of the 17 Chinese men arrested on suspicion of running an illegal gold mine in the country, authorities said late on Tuesday.


The men, who are travelling back to China, were detained last week along with others from Congo and neighbouring Burundi after failing to produce the required documents during a crackdown on unlicensed extraction of the minerals in the central African nation.

Jean-Jacques Purusi Sadiki, the governor of South Kivu, the province where the men were arrested, told reporters he was shocked to hear news of their release.

The Chinese miners owed $10 million in unpaid taxes and fines to the government, he added.

Around 60 Chinese nationals were at the site and officials detained the 17 who appeared to be in charge.

The Chinese embassy in Kinshasa has not responded to requests for comment. Burundi’s embassy said it was still waiting for details from its representative in Bukavu.

Bernard Muhindo, South Kivu’s finance minister and acting mines minister, said the intention was to improve the system.

“The idea is not to go on a manhunt, but rather to clean up the mining sector so that reliable partners can work properly and legally,” he told reporters.

The central African country says it has been struggling to stop unlicensed companies and in some cases armed groups from exploiting its rich reserves of cobalt, cooper, gold and other minerals.

Competition over mining operations has fuelled fighting in the region that borders Rwanda.

(By Yassin Kombi and Jessica Donati; Editing by Ed Osmond)

GOOD NEWS

CHART: EV battery metals bill sets new low as lithium, nickel, cobalt price slump continues

Frik Els | December 26, 2024 |

CAPITALI$M IS OVERPRODUCTION

While electric vehicle sales growth has certainly slowed down from the torrid pace of the last few years, the global passenger EV market, including plug-in and conventional hybrids, should easily top 20 million units this year.


In combined battery capacity deployed – a better indicator of battery materials demand than unit sales alone – the electric car market has expanded by a healthy 24% so far this year.

In total, 674.6 GWh of fresh battery power hit the globe’s roads from January through August, according to data from Toronto-based EV supply chain research firm Adamas Intelligence.

Hybrid approach

The rapid electrification of the global car parc comes despite a noticeable swing towards hybrid vehicles, which have inherently smaller batteries and therefore contained metal.

The combined battery capacity of plug-in hybrid vehicles steered onto roads globally for the first time this year is up 71% versus a more sedate pace for full electric passenger vehicles of 17%. At the same time the sales-weighted average battery capacity of plug-ins (PHEVs) is also rising, up 12% this year to 23kWh, more than a third of the average full electric vehicle.

A subset of the PHEV, the extended range EV or EREV where the combustion engine only acts as a charger for the battery, are even bigger users of installed metal. EREVs on average have 39kWh of battery capacity, more than most sub-compact and small cars.

EREV battery capacity and sales have more than doubled in 2024 and were it not for the PHEV market, the many news headlines saying the EV market is in a deep slump, may have carried more weight.
Law of averages

For miners supplying the EV battery industry, the news remain negative however: The latest data tracking sales, battery capacity and chemistry in over 110 countries paired with monthly prices show the weighted average monthly dollar value of the lithium, nickel, cobalt, manganese and graphite contained in the batteries​​ of the average EV is continuing its downward path.

As natural and synthetic graphite, lithium carbonate and hydroxide, and nickel, cobalt and manganese sulphate prices decline further, the raw materials bill for the average EV is now down to $510 compared to $918 in October 2023 and a monthly peak of more than $1,900 at the beginning of last year, according to Adamas Intelligence analysis.

The downtrend is led by lithium where the value per EV for the first ten months of the year is down 74% compared to the same period last year to $276. In October, the latest month with detailed data, the value of installed lithium set a new low of $212. In January of 2023 that figure was $1,444 per average EV.

Cobalt, at just under $42 is 34% below the value reached in October 2023. After a strong start to the year, manganese has now also succumbed to weakness in the battery raw material space, averaging just over $7 per EV battery.

For anode material, graphite loadings and values have held mostly steady at just under $26 per average EV, but the average for 2024 so far is 13% below that of 2023.
Iron phosphate vs nickel

The value of nickel in the average EV battery is down 25% as LFP battery chemistries continue to take global market share. LFP batteries represented 44% of the global total in terms of capacity deployed in GWh in October despite slow build out of LFP battery factories outside China.

That compares to a 33% share during the same month last year, more than offsetting the long-running trend towards high-nickel cathodes, and the growing popularity of NCM batteries for PHEVs where the energy density of nickel-based cathodes makes more sense given the weight of these vehicles.

For a fuller analysis of the battery metals market check out the December issue of the Northern Miner print and digital editions.

* Frik Els is Editor at Large for MINING.COM and Head of Adamas Inside, providing news and analysis based on Adamas Intelligence data.

Panama President sees no immediate risk from First Quantum mine

Bloomberg | December 26, 2024 | 

Copper shipments from Cobre Panama mine. (Image courtesy of Cobre Panama.)

Panama’s President Jose Raul Mulino said a government report shows there are no immediate environmental or safety risks from Cobre Panama, the First Quantum Minerals Ltd. copper mine that was shut in 2023.


Mulino cited a recent report conducted by the environment ministry, which examined minerals and other materials stored at the site. Mulino said the government will start to study a “conservation plan” for the mine in January.

“Right now, there is no irreversible contamination,” Mulino said Thursday. “Even though it doesn’t represent an imminent risk for the country at the moment, we can’t leave it abandoned perpetually so that it could eventually cause ecological damage.”

The $10 billion mine was shuttered in 2023 after Panama’s Supreme Court ruled that its operating contract was unconstitutional.

Mulino, who took office in July, ordered the environmental audit of the mine to help determine whether the facility can be reopened temporarily ahead of a possible permanent shutdown.

First Quantum is seeking damages from Panama via two ongoing arbitration cases.

 

Greek Companies and Tanker Engineers Pay U.S. Over $4.5M in MARPOL Fines

The tanker's owner and operator and two engineers each pleaded guilty to the offenses and attempting to hide it from USCG

Published Dec 24, 2024 1:42 PM by The Maritime Executive

 

 

The owner and operator of a Greek product tanker along with two engineers working on the vessel have each pleaded guilty in the latest U.S. Coast Guard MARPOL violation case. The fines totaled more than $4.5 million for offenses including discharging oily waste into the U.S. territorial waters and trying to conceal the crime including falsifying records.

The U.S. Justice Department reported that the chemical tanker Kriti Ruby committed the offenses during port calls in Jacksonville, Florida, and the Port of Newark, New Jersey, in May and September 2022. Built in 2008, the 48,000 dwt Kriti Ruby is registered in Greece.

The owners of the vessel, Avin International, and operator Kriti Ruby Special Maritime Enterprises entered their guilty pleas on December 23. Both companies pleaded guilty to pollution, falsification of records, and obstruction of justice. The owner was ordered to pay $3,375,000 and the operator an additional $1,125,000 with both companies also to serve five-year probation. They will be subject to compliance plans and monitors.

The vessel reportedly discharged oily waste into the sea through its sewage system bypassing the required pollution prevention equipment. In addition to not recording the discharges, the USCG said the crew concealed most of the pumps and hoses used to conduct the bypass operations in a sealed cofferdam.

Kriti Ruby’s former chief engineer and second engineer were also sentenced after having previously pleaded guilty. Former chief engineer Konstantinos Atsalis not only admitted to falsifying the vessel’s oil record book but he also acknowledged that the vessel’s crew had knowingly bypassed required pollution prevention equipment by discharging oily waste from the vessel’s engine room through its sewage system into the sea. Additionally, he admitted that he directed crew members to hide equipment used to conduct these transfers. He was sentenced to time served and a $5,000 fine. 

Sonny Bosito who had been the second engineer on the tanker also pleaded guilty to concealing the pollution by falsifying the records. He was sentenced to time served.

“Prioritizing profits over the environment by discharging oily waste into the sea and working to cover up that pollution is illegal,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We are committed to enforcing the law and fighting against maritime pollution.”

The problems came to out during a USCG expanded Port State inspection in September 2022 in Newark. The tanker was cited for deficiencies including blockages in the oil discharge monitoring and control system and the oil filtering equipment. At the time, USCG also reported the oil record book as missing. The Kriti Ruby received a seven-day detention. The vessel was also cited for five additional deficiencies on a subsequent USCG inspection in November 2022 in Philadelphia.

 

Another Later-Stage Development U.S. Offshore Wind Farm Shelved

Vineyard Offshore shelved its proposed project after Connecticut decided not to select wind in its current alternative energy solicitation (iStock)

Published Dec 24, 2024 12:49 PM by The Maritime Executive

 

Vineyard Wind, an affiliate of Copenhagen Infrastructure Partners, confirmed in a brief statement that it is shelving the proposed Vineyard Wind 2 project in response to Connecticut’s decision not to proceed in awarding wind projects after the recent New England tri-state solicitation. The project had been selected by Massachusetts and is in a later stage of permitting at the federal level.

“With Connecticut’s decision today (December 20) not to purchase the remaining 400 MW, we are unable to contract the project’s full 1200 MW at this time. We look forward to advancing this project and participating in future solicitations,” Vineyard Offshore wrote in its response.

Connecticut along with Massachusetts and Rhode Island launched the first multi-state coordinated solicitation earlier this year saying it was in response to the changing market conditions and challenges faced by offshore developers. They provided the opportunity for projects to bid either multi-state or individually. 

Massachusetts and Rhode Island announced in September that they had selected three projects with a total projected capacity of 2.9 GW. The two states will share SouthCoast Wind (which received federal approvals last week) while Massachusetts also selected New England Wind 1 with 791 MW of capacity. It also said it would take 800 MW from the 1,200 MW Vineyard Wind 1 project. It implied it would be sharing the project with another state.

Governor Ned Lamont and Connecticut’s regulators announced Friday that they were proceeding with solar power but decided not to take up any offshore wind in the current round. Lamont generally referenced cost considerations for power while saying the state was not ruling out offshore wind power in the future.

CIP won the lease area which is approximately 29 miles south of Nantucket in a 2018 lease auction. The project has advanced with its Construction draft and Operations Plan on file at the Bureau of Ocean Energy Management. In March 2024, BOEM included Vineyard Wind 2 in its announcement for an environmental impact statement to advance New England’s offshore wind projects. The hearings have been completed and BOEM is working on its report and the EIS. 

Vineyard Offshore CEO Alicia Barton said in September 2024, “We look forward to Connecticut’s forthcoming decision on the remainder of the procurement so that we can begin to deliver important economic and climate benefits to the region.”

Vineyard Offshore is in a joint venture partnership to develop Vineyard Wind 1, which is under construction. It holds the Vineyard Northeast lease off the coast of Massachusetts which is where the second project would be located, as well as Vineyard Mid-Atlantic which includes Excelsior Wind in the New York Bight. It also has a lease area off the coast of Humboldt County in Northern California.

Japan Accelerates Offshore Wind Selecting Consortiums for Two Larger Farms

Japan is developing near-shore fixed bottom offshore wind projects before transition to floating wind (JERA)

Published Dec 25, 2024 2:11 PM by The Maritime Executive

 

Japan Accelerates Offshore Wind with Projects Involving BP, JERA, Marubeni, and Others

Japan selected two consortiums to develop offshore wind projects as it seeks to accelerate its renewable energy programs. Combined the two projects would provide over 1 GW of energy and one could be one of the largest offshore wind farms yet developed in Japan.

The country’s third round solicitation had run during the half of 2024 and was being closely followed in the industry. Previously, Japan attracted Iberdrola and RWE for projects. The winners of this round included BP and JERA, which separately have announced plans to combine their operations, as well as participation in the consortiums from Marubeni, Tokyo Gas, Kansai Electric Power, and others.

The winners were selected jointly by Japan’s Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport, and Tourism. The Ministries highlight the experience of the companies including JERA which has projects in Taiwan and Europe and partner Green Power Investment Co. which managed the entire process for the Ishikari Bay New Port Offshore Wind Farm which started operation in May 2024 with 112 MW and Wind Farm Tsugaru, which started operations in January 2024 with a capacity of 122 MW. The two projects are among the largest in the country currently.

Both the projects selected in this next round are for fixed-bottom wind farms which will be placed closer to shore. Japan’s offshore topography limits the opportunities for fixed-bottom wind farms with the expectation that it will need to deploy floating wind farms to reach its power goals.

One project will be located in the Sea of Japan offshore of Aomori Prefecture in the northern part of Japan’s main island of Honshu. It will consist of 41 turbines manufactured by Siemens Gamesa with a total capacity of 615 MW, making it one of the largest offshore wind power generation projects in Japan. The Tsugaru Offshore Energy Consortium consists of JERA, Green Power, and Tohoku Electric Power.

Slightly further to the south also on the Sea of Japan offshore of Yuza Town in Yamagata Prefecture the second project will consist of 30 Siemens Gamesa turbines for a total capacity of 450 MW. The Yamagata Yuza Offshore consortium consists of Marubeni, BP, Kansai Electric Power, Tokyo Gas, and Marutaka. 

The sites were selected by the government in October 2023. The ministries report the two projects will each start operations in June 2030. The country’s goal is for 10 GW by 2030 and 45 GW by 2040 from offshore wind.