Expectation and Foresight of
FOW in Japan
Key for decarbonization in Japan

September 2021

Japan’s Floating Offshore Wind GroupJapan’s Floating Offshore Wind Group
Japan’s Floating Offshore Wind Group is launched by 6 companies, which are actively promoting floating wind
power in Japan.

Table of Contents
Key Messages ........................................................................................................... i
1. Introduction: What is FOW? ..............................................................................1
2. Accelerating Global Development of FOW by Setting National Targets .............2
3. Proven and Mature Technology, Ready for Optimization...................................4
4. The Role of FOW in Japanese Energy Policy .......................................................6
5. Potential for Developing FOW Industry in Japan ...............................................8
6. Pathways to Reduce LCOE ............................................................................... 10
7. Key measures to expand and accelerate development of Japanese Market .. 11
8. Towards the Development of FOW Market..................................................... 14
Glossary and Abbreviation.................................................................................... 16
Sources and References ........................................................................................ 17

Key Messages
FOW1 technology is a proven and maturetechnology and large‐scale FOW projects canbe in operation by 2030


FOW is a proven and mature technology, based on
the oil & gas industry, and at the stage of
optimization for cost reduction.

With 1.5℃ target of Paris Agreement in mind, FOW
has increasing importance, and areas like Europe,
US, South Korea announced ambitious 2030 targets
and development plans.

With higher predictability, private investments areaccelerated, and many companies are to enter themarket. The project capacity is also increasing,spanning from several hundred MW to GW scale.

FOW harmonizes with the local communities
and contributes to the domestic economy andsustainable economic growth

FOW is a key for Japan to achieve
decarbonization


By developing FOW concurrently with BFOW, the2030 target to reduce greenhouse gas emissions by
46‐50% and carbon neutrality by 2050 can beachieved.



The seabed surrounding Japan can be very steep.
FOW unlocks the potential of these areas byallowing a cost efficient installation of offshore
farms in deep waters and harness promising windresources. Further potential is expected in the EEZ.

Japan, which has FOW related industries such as
construction, shipbuilding, steel and chemicalindustry, has potential for domestic industrial
development.

The development of FOW supply chain willcontribute to the domestic economy revitalization
with the creation of new jobs, and sustainableeconomic growth will be achieved.



We will deepen our understanding through close
dialogue with local communities and fisheries, andwork together to create new value throughharmonized measures.

Industrialization and Maturation are the key
factors for cost reduction

FOW can become a cost competitive power
resource by cost optimization and developing inwide areas with strong wind resources, such as EEZ.

The key factors to realize the reduction of LCOE are
the Industrialization and Maturation of FOW toenable sizable capacity of installation.

To realize these factors, it is necessary to create
attractive business environment by forming a large,
long‐term, stable market that enables large‐scale
investment decisions by the industry, and prompt
clarification of systems concerning FOW such as
development in EEZ.

To install sizable capacity of FOW, it is important toestablish a steady industry for FOW as early as
possible by 2030.

Proposals for FOW Market Development
1. Set FOW target of 2‐3GW by 2030, mid and long‐term targets
 We propose to set a 2030 target of 2‐3GW, and to set mid and long‐term targets.
 The industry is preparing and large‐scale FOW projects can be operational by 2030, thus contributing to Japan’s

decarbonization.

2. Promote strategic development plans for large‐scale and domestic
industrial development
 We propose that development plans for projects spanning from several hundred to GW scale by 2030 are

necessary in order to industrialize, mature, and reduce FOW costs.
 By showing clear paths for leveraging the domestic industry, reducing costs, and taking strategic action,

domestic FOW supply chain can be competitive internationally.

3. Accelerate discussion to create an attractive FOW business environment
 We propose to set committees dedicated to discussing FOW matters, and outline a clear path towards building

a business environment. This includes setting mid and long‐term targets, plans for large‐scale FOW farms, andworking towards developing in the EEZ.

1

In this document, “FOW” refers to “Floating Offshore Wind”, and“BFOW” refers to “Bottom‐Fixed Offshore Wind”. Please refer to theglossary and abbreviation at the end of this document.

i1. Introduction: What is FOW?
1.1 Types of Offshore Wind
‐ Bottom‐fixed and Floating ‐Suitable substructure depends on the depth of water andnatural conditions at the location, social conditions such as
fishing, and characteristics of the port. The most economical
choice is made on a site basis.

Offshore wind can be distinguished into two types, thebottom‐fixed offshore wind (BFOW) and floating offshore
wind (FOW). In BFOW, the wind turbines are installed on afoundation fixed to the seabed. On the other hand, FOW is
installed on a substructure floating in the sea.

1.3 Advantages of FOW
FOW has many advantages in terms of installation
requirement, technology and infrastructure (Table 1). 2

In general, BFOW is suited to sea areas with water depth up
to 60m. Therefore, the BFOW is installed in the sea areas
relatively close to the shore. When the water depth exceeds
60m, FOW is considered to have a cost advantage. FOW
enables offshore wind to be installed in deeper waters.

Table 1 Advantages of FOW
 Can be installed further offshore with
Installationstrong winds
Environment  Minimal effects by an earthquake Can be installed in deep waters
 Possible to install without jack‐up vessels
Technology  Substructures of the same design can beapplied to various seabed conditions,
Infrastructure
enabling large‐scale production

1.2 Types of substructure
The FOW farm mainly consists of wind turbines,
substructures, mooring lines and anchors, cables, andsubstation.
Substructures can be distinguished into 4 types: Semi‐
Submersible, Barge, Spar and Tension‐Leg Platform (Figure
1).

Figure 1 Types of Substructures2

For details, see Section 6.2.

1

2. Accelerating Global Development of FOW by Setting
National Targets

2.1 FOW Targets and Development
plans announced in countries
around the world

Targets and Development plans of GW scalewith aim to start operations by 2030
In Europe, the UK, Spain, Ireland, France, Scotland andNorway are showing developments.

Growing importance of FOW in achieving
decarbonization

Governments in the US and Asia also started recognizing theimportance of introducing FOW as a means to realize adecarbonized society.

Amid the urgent need to address climate change, it isnecessary to further expand the use of offshore windglobally, in order to reduce global greenhouse gases
emissions by 45% from 2010 levels by 2030 to limit thetemperature increase to 1.5°C based on the Paris Agreement,
and to achieve carbon neutrality by 2050.

The UK has set 2030 FOW target of 1GW, and Spain has set
2030 FOW target of 1‐3GW. Ireland also announced a plan
to produce a long‐term vision for FOW in the Atlantic waters.
FOW bidding processes are underway in France, Scotland
and Norway. France leads the way, and the auction for 3 sites,
each with 250MW class farm is scheduled for 2021‐2022,
and bidding plans for an additional 500MW class farm arebeing considered.

WindEurope, European wind industry association, releaseda target of 450GW by 2050, of which 100 to 150GW would
be achieved with FOW.3
It is necessary to expand the installation of FOW in addition
to BFOW, and many governments have announced theirtargets for the installation of FOW and their bidding plans.
3

In the US, the Biden Administration and the California State
Government announced that they would develop 4.6GW of

WindEurope (26)2

FOW off the coast of California. Furthermore, Oregon State
Government aims to plan for the development of up to 3GW
of FOW by 2030.

Scotland earned broad developers’ attention as suitableareas for the development of FOW farms because many of
the candidate sea areas are in deep waters.

The government of South Korea also announced a large‐
scale FOW construction project off the coast of Ulsan, aiming
to start operation of 6GW of FOW by 2030.

In South Korea, the announcement of an ambitious 6GW
development plan by 2030 has attracted considerable
interest from around the world, and a number of corporate
consortiums are working to flesh out the plan.

2.2 Accelerated private investment
towards large‐scale FOW farms

Development expanding to several hundred
MW to several GW scale projects
The plans of the government and the industry in eachcountry have shifted from small‐scale projects of several
wind turbines to large‐scale projects with a large number ofwind turbines, and have expanded to several hundred MW
to GW scale.

Increased market attractiveness accelerates
private investments
In response to the announcement of the targets anddevelopment plans by the governments of various countries,
the interest of companies to invest has increased rapidly.

This development indicates that clarification by thegovernment of targets and specific development plans (sizeand schedule) will increase market predictability and leadto the promotion of private sector investment andacceleration of development speed.

In the UK, where a 2030 target of 1GW was set, concreteplans for the development of FOW farms have beenlaunched, and the UK industry expects 2GW of installations
by 2030.4
In addition, the ScotWind Leasing round off the coast of

Figure 2 FOW Government Targets and Development plans*Norway: Maximum capacity including BFOW
*France: Total announced and planned bids as of 2021
*Scotland: Most of the 15 sites are located in sea areas with a water depth of 60m or more, and the installation of FOW is expected.
Source:UK Government (1), Ireland Government (2), GWEC (3), Norwegian Government (4), Ministère de laTransition écologique et Solidair (5),Commission Nationale du Débat Public (6) (7), Offshore Wind Scotland (8), Korea.net (9), Ministry for the Ecological Transition and the Demographic
Challenge (10), The White House (11), Oregon State Legislature (12)4GWEC (27)33. Proven and Mature Technology, Ready for Optimization
3.1 FOW has reached the stage oftechnology to provide stable power
generation

Peterhead, Scotland, became the world's first FOW farmwith a capacity of several tens of MW, and consistenly
achieved an average capacity factor above 54% since its startof operation.

Technology established in the offshore oil andgas industry

The WindFloat Atlantic (25MW, Ocean Winds), which began
operating off Portugal in 2020, consists of 3 wind turbines of
8.4MW each.

Many of the technologies used in FOW, such as
substructures and mooring systems, are converted from theoffshore oil and gas industry with a history of more than halfa century.

Kincardine (50MW) in Scotland, and Hywind Tampen(88MW) in Norway are currently under construction andscheduled to commence operations in 2021 and 2022,
respectively.

There are already small‐scale FOW farms with high capacity
factor and long operation times, and large‐scale projects areunder development, proving that the technicalinfrastructure of FOW is already established.

In Japan, a 17MW FOW project has been awarded by METI
and MLIT off the coast of Goto City, Nagasaki Prefecture.

Technology reliability at bankable level

We are at the stage of stepping up to cost‐competitive power
generation by further optimizing technologies and scaling up
to reduce costs while utilizing the existing ones.

In Europe, bankable FOW farms that meet the lending
standards of financial institution are emerging.
WindFloat Atlantic signed a EUR 60 million project financing
agreement with European Investment Bank in October
2018.5

Steady operation of FOW farms proven
In Europe, where the offshore oil and gas industry has
developed, the experience in the development andoperation of offshore plants have been utilized in thedevelopment of FOW farms in the tens of MW class since themid‐2010s. It has proven that stable power supply is possible
even under harsh weather and sea conditions.

This is the result of appropriate site selection, the selectionof reliable technology, and the expertise of the developers
and construction firms involved. This proves that the FOW
system is at the technological level where stable power
generation is possible.

In 2017, Hywind Scotland (30MW, Equinor), off the coast of
Figure 3 Operational and under construction FOW farms

Source: Toda Corporation (13), Equinor (14), Ocean Winds (15), Cobra Group (16), Equinor (17)5European Commission (28)4

3.2 Key points for technology
optimizationmaterials and relevant technologies (welding, painting,anticorrosion, etc.).

Integrated design of substructure and windturbine

Improvement of mooring and anchoring
technology

While the optimization of the substructure itself is important,in order to minimize the motion of the substructure, anintegrated design and development of the substructure andthe wind turbine combined is also crucial.

The foundation of mooring technology has been established
for the floating platforms in the offshore oil and gas industry.
It is effective to improve the following technologies tofurther reduce the costs.6

 Development of lightweight mooring lines (synthetic fibers,

An optimum design of the entire system is also needed,which should take into account the behavior and load ofwind turbines, substructures, mooring systems, dynamic
cables, etc., as well as the workability, maintainability, andoverall cost.6

etc.) with high durability and tensile properties Design and manufacture of hybrid mooring lines usingsynthetic fibers and steel chains Improvement of construction efficiency by integral designof substructure, anchor and mooring lines

Large‐scale production of substructures

Long‐distance, high‐voltage dynamic cables

Substructures of the same design can be used in various sea
areas because they are not affected by water depth orseabed features. For this reason, substructures are suitable
for large‐scale production and are expected to have asignificant cost reduction effect.

FOW may require dynamic cables that float in the sea. Long‐
distance, high‐voltage dynamic cables technology is well‐established and they have already been used in relation to
offshore oil and gas platforms.
In the future, cost reductions are expected through thedevelopment of ultra‐high voltage cables for large‐scale GW
farms and technological improvements such ascountermeasures for biofouling.

For industrial production of substructures, design andprocedures shall be optimized to enable continuous
production, automation of suitable manufacturing
processes (automatic welding, etc.), and optimal selection of

6

Carbon Trust (29) NEDO (30)5

4. The Role of FOW in Japanese Energy Policy
4.1 Evolution of Energy Policies andGrowing Expectations for Offshore
Wind

4.2 Meeting the target throughacceleration and sizable capacity of
installation of offshore windUrgent Climate Measures and Expectations
for Offshore Wind

Need for accelerated installation based on
2030 greenhouse gas reduction targets

Climate change is an urgent issue, and as efforts towards
decarbonization are accelerating worldwide, Japan has set
targets to reduce greenhouse gas emissions by 46% from2013 levels by 2030 (aiming for 50%) and achieve carbon
neutrality by 2050. To limit the temperature increase to
1.5°C, it is necessary to achieve the target soonest and to set
further ambitious targets.

The targets announced at the Public‐Private Council
represent a milestone for the government and industry. On
the other hand, in order to achieve the greenhouse gas
emissions reduction target, it is necessary to increase theshare of electricity generated by renewable energy
generation to 36‐38%. This is much higher than the current
target share of renewable energy (22‐24%) that was given in
the Fifth Basic Energy Plan. Offshore wind has particularlyhigh potential for growth, therefore it is important toaccelerate its implementation to ensure the achievement ofinternational commitments.

In order to achieve these targets and more, it is essential todecarbonize the power sector as soon as possible, and it isnecessary to introduce sizable capacity of renewable energy.
Forests cover 2/3 of Japan's land area, and there is little
flatland. Therefore, it is essential to advance into the ocean,and there are rising expectations for offshore wind.

Further installation necessary for carbon
neutrality in 2050
According to calculations by several research institutes, toachieve carbon neutrality by 2050, it is necessary to
introduce more than 100GW of offshore wind (Table 2 ).

Setting Targets for Japan's first Offshore WindTo make offshore wind a major power source, it is necessary
to promote private investment in the Japanese market,
foster industries, and establish cost competitiveness. To
accelerate this process, the Public‐Private Council on
Enhancement of Industrial Competitiveness for Offshore
Wind Power Generation (Public‐Private Council) wasestablished in July 2020.

This is several times higher than the 2040 target, andaccelerating the installation of offshore wind is an urgent
task.

Table 2 Required Offshore Wind Capacity to achieve
Carbon Neutrality by 2050

Ambitious and specific targets for the installation of offshore
wind by the Japanese government were recognized as
essential, and the 2nd Meeting of Public‐Private Council set a
specific target of "Forming 10GW by 2030 and 30‐45GW by
2040, including FOW".7

Organization
National Institute forEnvironmental Studies
Renewable Energy Institute*1

Figure 4 Three Targets by the Public-Private Council

Required Installed Capacity
Approx. 80‐240GW *1
63‐199GW *2

Calculated power generation is converted into facility capacity
assuming an average facility capacity factor of 40%. The figures varybecause multiple scenarios are set based on social changes andtechnological differences in 2050.
Since the scenario is divided into the case of 100% domestic
production and the case of 50% import of green hydrogen, thefigures vary.

National target

10 GW by 2030 and 30 ‐ 45 GW by 2040,
including FOW*2

Domestic
procurement
ratio

Achieve 60% of total lifetime
domestic procurement ratio by 2040

Source: NIES (19), REI (20)Cost reduction

Reduce the cost of BFOW to 8‐9 yen/kWhby 2030 ‐ 2035

Source: Public‐Private Council on Enhancement of Industrial
Competitiveness for Offshore Wind Power Generation (18)7 It is defined as "certified volume under the Act on Special Measures
Concerning Procurement of Electricity from Renewable Energy Sources

by Electricity Utilities," and does not specify that the given capacity
needs to be in operation in 2030 or 2040.

6

4.3 Wind Potential Offshore and theNecessity of FOW

Based on this trial calculation, the target of 30‐45GW in 2040
can only be achieved by the installation of both BFOW and
FOW.

Promising potential of FOW

Furthermore, in order to achieve a 100GW level of offshore
wind installations for carbon neutrality in 2050, sizable
capacity of installation of FOW is necessary.

Development of FOW concurrently with BFOW cancontribute to the 2030 target to reduce greenhouse gas
emissions by 46‐50% and carbon neutrality by 2050.

Industrialization of FOW required by 2030

According to Japan Wind Power Association (JWPA), FOW
has a large potential because the sea areas around Japan
have a steep seabed and FOW can be installed at deep sea
depths. Furthermore, the wind speeds are high further
offshore and FOW can harness this large potential of windenergy. It is also evident that suitable FOW sites exist in thesea areas relatively close to land within 30 km from shore(Table 3).

It is also important to establish an industry that will enable
the steady development of FOW as early as possible by 2030
in order to achieve the sizable capacity of installation of FOW.
Achieving the target of 30‐45GW in 2040 means that morethan 2.0‐3.5GW/yr of projects need to be created annuallyfrom 2030 onwards. This is 2.0‐3.5 times faster than the
expected rate of 1GW/yr by 2030. To achieve this, it isnecessary to start developing and building FOW farms now
and develop related industries and necessary infrastructures.

Further potential is expected in the Exclusive Economic Zone
(EEZ; areas stretching between 12NM and 200NM from thecoastal baseline)8. According to a survey conducted by the
Ministry of the Environment, the offshore potential with awater depth of up to 200m, including EEZ, is estimated to be
3 times greater than the potential in waters within 30km
from shore.9 IEA has analyzed the offshore potential with awater depth of up to 2,000m, and the potential for Japanwas estimated to be approximately 9 times the amount of
total electricity generated annually10.

FOW is not a technology of the future, it is needed today,
and it is extremely important to start studying the full‐scaleinstallation of the system from now.

Figure 5 Wind condition map of sea areas aroundJapan

Table 3 Estimated potential by JWPAWind speed[m/s]

Potential of FOW [GW] *(100‐300m water depth)

7.0‐8.0284

8.0‐9.0128

9.0 or more

12

Total

425

* Within 30km from shore, Annual average wind speed: 7.0m/s or more, Water
depth: 100‐300m for FOW, Minimum capacity per project: 120MW, Required
area: 3MW/km2 for FOW.

Source: JWPA (21)

FOW required to Achieve Climate Targets
The Central Research Institute of Electric Power Industry
estimates the potential to be up to 23GW for the bottom‐
fixed‐type and approximately 90GW for FOW within the
territorial waters (12NM, approximately 22 km) excluding
the areas where it is difficult to adjust interests of different
stakeholders. 11

Source: NEDO NeoWins (Ocean Wind Conditions Map) (22)810For details, see Glossary and Abbreviation at the back of the
document.
9
Ministry of the Environment (31)

IEA (32)
CRIEPI Estimate of potential for offshore wind in the “installation
prioritizing scenario” using GIS evaluation tool. (33)117

5. Potential for Developing FOW Industry in Japan
5.1 Strengths and Potential ofDomestic Industries

Kitakyushu. Experience in various substructures is one of thestrengths in Japan compared to other countries.

Compatibility of FOW supply chain andJapanese industries

Through this experience, knowledge and lessons have been
accumulated in various industries, including construction,
marine engineering, shipbuilding, and steel processing.

The FOW supply chain consists of a wide range of industries
throughout the life cycle of project development,
manufacturing, construction and installation, operation andmaintenance, and decommissioning.

In addition, Japanese companies are showing great interestin the FOW market, such as substructure manufacturing andmooring line manufacturing. Japan has sufficient foundation
to industrialize domestic supply chain for FOW.

Japan, which has FOW related industries all over the country,
has high compatibility with FOW and has high potential fordomestic industrial development.

5.2 Effects of FOW
Revitalizing the domestic economy andrealizing green growth

The construction industry is strong nationwide, and the
shipbuilding industry is very active. In addition, there arestrong industrial base for industries that can provide
materials for substructures, mooring lines and anchors, suchas steel, concrete and chemical products.

FOW uses many materials (steel, concrete, chemical fiber,etc.) for substructures, mooring lines, and anchors. FOW
farms of several hundred MW to GW scale use 10,000‐
100,000 tons of materials.

Demonstration Projects and Knowledge inJapan

By procuring and manufacturing related materials
domestically, the domestic economy and regional economy
will be revitalized over the long term, providing
opportunities for new industries and job creation in theregion. This is exactly what Japan aims to achieve through its
sustainable economic growth policy.12

Since the 2010s, Japan has been the first country in theworld to carry out demonstration tests of FOW using spar,semi‐submersible, and barge substructures off the coast of
Goto City in Nagasaki Prefecture, Fukushima Prefecture, andTable 4 FOW Supply Chain and Potential Industries
Major supply chain areas

Major areas and industries with potential of entry

Environmental survey

Environmental assessment, Metocean measurement

DesignEngineering and Design consulting

Main body manufacturing

Shipbuilding, Plant engineering, and Construction

Material manufacturing

Steel processing and concrete fabrication

Related technology

Welding, Painting and Anticorrosion

Main body manufacturing

Steel products, Mooring lines

Material manufacturing

Steel processing and Chemical products

Main body manufacturing

Shipbuilding, Steel products, and Machining

Material manufacturing

Steel processing

Manufacturing

Cable manufacturing

Project development

Substructure

Manufacturing

Mooring

AnchorArray and export cable
Construction andInstallation;
Decommissioning

Offshore construction
and logistics
Onshore construction
and logistics

Civil engineering and marine
Marine civil engineering, Construction
transport
Vessel operators, dredging companies, Port infrastructure andShipping and Ports
upgrades, Transportation
Land civil engineering work, Construction work, Transportation,
Civil engineering
Lifting and other equipment

Operation and MaintenanceWind power plant maintenance, Vessel operators

12

An industrial strategy that aims to create a virtuous cycle between
the economy and the environment by transforming the industrial
structure and socio‐economy through environmental measures such as

the installation of renewable energy, low‐carbon transportation, andenergy conservation, by recognizing global warming as an opportunity
for growth.

8have economic ripple effects, and stimulate sustainable
development.

Expectations for Regional Development
FOW is expected to contribute to regional economy.

These factors are directly linked to Japanese government's
energy policy of 3E + S. FOW can also contribute to the global
SDGs goal of “Sustainability”, making FOW a means toachieve 3E + 2S.

Concrete substructures are expected to be procured andmanufactured in Japan, and local companies are expected toenter the market.
Ideally substructures are constructed and assembled in theport area. Therefore, onshore construction work is needed,
for which local companies might contribute to.

Figure 6 Contribution of Offshore Wind to 3E + 2S

3E+S

In areas under development, locally based service andmaintenance companies have been established,
contributing to the revitalization of the local economy andjob creation.

SafetyFOW is also expected to have a positive impact on otherrelated service business. In Europe, the activities related tooffshore wind farm development, construction and O&M
has generated positive ripple effects on a broad range of
hospitality industries.

Environment

Advanced 3E+2S

Safety as a top priority

Energy Self‐efficiency

Energy security

Environmental compatibility

Reducing public burden

Economic efficiency

Contribution towards Japanese 3E + 2S

Innovations for safety bytechnology/governancereformIncrease self‐sufficiency
rate and ensure diversity ofchoiceSEofdecarbonisation
E Realization
domestic industrial
competitiveness
E Enhancea sustainable
society
S Growing

Offshore wind contributes to
Resilientpower supply
Reducing
Fossil Fuel

FOW systems provide resilient power supply, reduce CO2
emissions from the power generation sector, improveenergy self‐sufficiency and distribute disaster‐resistant
power sources, reduce costs for fossil fuel procurement,

Source: METI (23)9

CO2 reduction ofEnergyelectricity sector
Self‐sufficiency
Economic
Expansion of
benefits
sustainable development

6. Pathways to Reduce LCOE
6.1 Industrialization and Maturation
are the key factors for cost
reduction

Expansion of annual installation and farm size
In order to increase the cost reduction effect, it is effective
to increase the number of FOW farms developed in themarket as a whole and to expand the scale of farms.

Outlook by major European institutions

The increase in the number of projects developed each year
will make it easier for component manufacturers to establish
large‐scale production systems. In addition, the expansion of
the scale of the farm will increase the number of windturbines, substructures, and other components generating
economies of scale. It will also lead to an increase in theoperation rate of infrastructure and personnel during
construction and operation and maintenance, which willfurther reduce the cost.

WindEurope, European wind power industry organization,
estimates that the commercialization of FOW could reduce
LCOE by 65% by 2030 (Figure 6). In addition, WindEurope
cites the following three factors that can reduce LCOE by65%.


Industrialization and maturation of FOW to enablelarge‐scale project development



Utilization of knowledge from offshore oil and gas
industries and bottom‐fixed‐type industries

Increase in the number and scale of FOW projects

6.2 Featureｓ of the FOW System thatenable LCOE reduction

Figure 7 Example of cost reduction potential
analysis of FOW

Harnessing good wind resources
For wind power, strong and stable wind is the mostimportant factor to increase power generation. Even withthe same wind turbine, the higher the wind speed, thegreater the amount of power generated, leading to a
reduction in LCOE.

100%
90%
80%
70%
60%

In general, the further we are from the shore, the stronger
and more stable the wind becomes. In Japan, where theseabed can be very steep, the ability to receive strong andstable winds far offshore and deep into the sea is a major
attractiveness of FOW.

-43%

50%

-13%

40%

-4%

30%

35%
-4%

-2%

20%
10%

Industrial production of substructures
Since the substructure of the same design can be applied tovarious depths with little or no influence from the seabedfeatures, large‐scale production of the substructure ispossible.

2030

WACC

Capacity
FactorPlant life

OPEX

CAPEX

2020

0%

Source: WindEurope (24)The shift to continuous production of substructures is amajor factor in reducing installation costs.

Industrialization and Maturation are the Key
Factors

Installations without large jack‐up vessels
possible

The key factors to realize the reduction of LCOE are theIndustrialization and Maturation of FOW to enable sizable
capacity of installation.

For FOW, the substructure and the wind turbine are usuallyassembled at the port and towed to the installation site at
the sea. In this case, large‐scale assembly work is not
required offshore, meaning crane vessels and tugboats canbe used, without the necessity of using large jack‐up vessels.

It is necessary to form a large, long‐term, stable market thatenables large‐scale investment decisions by industry, andprompt clarification of systems concerning FOW such as
development in EEZ and create attractive businessenvironment.

10

7. Key measures to expand and accelerate developmentof Japanese Market
7.1 Deepening the vision for offshore
wind industry

setting a target for FOW to achieve carbon neutrality by 2050
will clarify long‐term stable market formation.

Need to advance policies to enhance market
attractiveness7.3 Identifying regulation‐related
issues and necessary measures
specific to FOWIn December 2020, Japan's offshore wind market took a big
step forward with the announcement of the first "Vision for
Offshore Wind Power Industry (1st)" at the Public‐Private
Council.13

Acceleration of EEZ development andsolutions to related issues

In addition to targets, this industrial vision presented acomprehensive basic strategy, including the introduction ofa new government‐led project formation scheme (known as“Japanese centralized system”), the development ofelectrical and port infrastructure plans, the development of
the business environment through inspections ofregulations and standards, and human resource
development. These factors greatly contribute to the
expansion of the offshore wind.

Japan has EEZ that is approximately 12 times the size of its
land area, and it is necessary to install in EEZ in addition to
the territorial waters for the expansion of FOW.

It is effective to start a discussion between the government
and the industry at an early stage and take concrete action
on the systems and regulations including EEZ development.

It is important to grasp regulation‐related issues related to
EEZ development at an early stage, and to facilitate
development.

Furthermore, it is crucial to improve the attractiveness of the
FOW market with market size and long‐term stability.

7.4 Development of port
infrastructures for FOW

Key measures under consideration in Public‐
Private Council









Based on the first "Vision for Offshore Wind Power Industry",
a study group has been established to discuss the locationand scale of future port infrastructures and harbors, and thedevelopment of port infrastructures and harbors is being
discussed considering the technological development statusof FOW.14

Achievement of installation targets, domestic
procurement ratio, and cost reduction targets
New government‐led project formation scheme(known as “Japanese centralized system”)
Development of grid and port infrastructure plans
Streamlining regulations and standards
Strengthening supplier competitiveness
Human resource development programs
Development of technologies especially FOWInternational standardization andintergovernmental discussions

In FOW, it is assumed that the substructure and the windturbine are assembled at the port, then towed to theoffshore project site. Depending on the type of substructure,
it is necessary to secure enough water depth to tow a
substructure at the port.
It is necessary to steadily promote port development
suitable for the installation of FOW through close
consultations between the public and private sectors.

7.2 Setting large‐scale, mid and long‐term targets for FOW
To accelerate the development of the FOW industry, it isimportant to have concrete targets for FOW within theoffshore wind target of 10GW by 2030 and 30‐45GW by
2040, and clearly show the vision of the country and industry.
By specifying the large‐scale market in the future, it isexpected that private companies interested in FOW will be
encouraged to enter the market and that investment inproduct and technology development and supply chain
development will be promoted.

Offshore wind is a new industry full of hopes and challenges.
For offshore wind development and operation, various
industries are involved such as developers, component
suppliers, construction companies, operators, andmaintenance companies and financiers and/or institutional
investors as well as lenders.
In order to realize the large‐scale installation of offshorewind, it is necessary to develop tens of thousands of humanresources throughout the supply chain.

It is also important that there are defined medium and longterm targets. In addition to the targets for 2030 and 2040,
13

7.5 Development of human resources

It is important to promote education for the young
14

See also Chapter 4 for details.

11

MLIT 2050 Carbon Neutrality Forum (34)The FOW installed off the coast of Goto City, Nagasaki
Prefecture has a reef for demersal fishes at the base as well
as floating fish reef at the sea surface15, and its reef effecthas been confirmed.16

generation that will lead the future of offshore wind. It isnecessary for the government, academia, and industry to
work together for education in high schools, technicalcolleges, and universities so that the next generation candeepen the understanding and see the attractiveness of
FOW.

FOW farms off the coast may serve for fish breeding withpossible ripple effect to the coastal area.17

In addition, it is also important to conduct safety training toraise awareness of health, safety and environment (HSE).
Figure 8 Image of floating reef installation around
FOW

7.6 Harmonization with Local
Communities and Fisheries
Maritime space design to build cooperative
relationship
The sea is a complex and important space for diverse
stakeholders. It is extremely important to discuss and design
ways of using the maritime space to build a cooperative
relationship through dialogues among relevant stakeholders.
In Europe, Maritime Spatial Planning is a process to identify
stakeholders who use these areas and to coordinate theirviews towards collaborative use.
Source: Designed based on RIOE (25)

In Japan as well, it is important to promote maritime spacedesign to build cooperative relationships among thestakeholders.

Example of harmonization (2): Creation of fish
farming and aquacultures

Harmonized measures and new value creation
through dialogue

It is considered that new types of fish farms andaquacultures can be created in combination with FOW. For
example, automatic feeding equipment can be installed on
floating structures.18

We will be able to deepen understanding through close
dialogue with local communities and fisheries, and work
together to create new values through harmonizedmeasures.

In France and Spain, trials are underway to build floating
aquaculture facilities in parallel to FOW.19 20

In the stakeholder dialogues, it is important to gain a deep
understanding of the sea areas where fishing is conducted,
the fishing methods used, and the relationship between thelocal tourism industry and the sea areas, and to pursue
harmonized measures and development plans that respect
this understanding.

In Europe, as part of the plans to realize sustainable fisheries,
efforts are underway to cultivate fishes in offshore facilities,
for which electricity from FOW can be used.

Example of harmonization (3): Collection andutilization of metocean data

In addition, effective measures and plans will increase fish
catch, create job opportunities, revitalize and stimulate
growth in local communities.

One of the possible harmonized measures will be to use
floating equipment to collect ocean data and utilize the data
for fishing. For example, sensors can be installed in thefoundation to measure water temperature, salinity, flow
direction and flow velocity, wave height, wave direction,subject to change for each possible project site.16

Example of harmonization (1): The reef effect
The "reef effect" is one of the positive effects that FOW is
expected to have on fisheries. The reef effect of FOW is
studied in each country, and the effects vary depending on
the fish species.

15

18

16

19

RIOE (35)
RIOE (25)17Tokyo Kyuei (36)Fukushima‐Forward Consortium (37)
MISTRAL (38)20
MARIBE (39)

12

13

8. Towards the Development of FOW Market
Proposals for FOW Market Development
1. Set FOW target of 2‐3GW by 2030, mid and long‐term targets
2. Promote strategic development plans for large‐scale and domestic industrial development
3. Accelerate discussion to create an attractive FOW business environment

8.1 Set FOW target of 2‐3GW by 2030,
mid and long‐term targets

Promote strategic development plans toachieve domestic industrial development

Set the target of 2‐3GW by 2030

In promoting the development of FOW, we propose that the
public and private sectors work together to formulate astrategic development plan to realize domestic industrial
development.

We propose to set a 2030 target of 2‐3GW, and to set mid
and long‐term targets.
Deployment of FOW is essential for achieving the 2030
greenhouse gas reduction target and achieving carbon
neutrality as early as possible by 2050.

By making use of the technologies established to date and,identifying
further
optimization
opportunities,
environmental factors such as typhoons unique to the Asian
region, as well as how to take advantage of the strengths ofdomestic industries, we can create strategic development
plans, enabling domestic industries to become
internationally competitive.

The industry is preparing and large‐scale FOW projects canbe operational by 2030, contributing to Japan’s
decarbonization.

Establishment of medium‐ and long‐termtargets for 2040 and 2050

8.3 Accelerate dedicated discussion tocreate an attractive businessenvironment

It is important to set medium‐ and long‐term targets forearly realization of carbon neutrality by 2050.
By specifying the portion of FOW to be operational by 2040
out of the overall OW targeted capacity (30‐45GW) andsetting a target for 2050, long‐term stable market formationon the scale of several GW every year will be clarified andmarket attractiveness will be further enhanced.

Early initiation of comprehensive discussions
to accelerate FOW
We propose to set committees dedicated to discussing FOW
matters, and outline a clear path towards building a businessenvironment. This includes setting mid and long‐termtargets, plans for large‐scale FOW farms, and working
towards developing in the EEZ.

8.2 Promote strategic development
plans for large‐scale and domestic
industrial development

By comprehensively discussing issues for the large‐scaleinstallation of FOW and implementing effective measures,
we will be able to realize the development of large‐scale
FOW farms by 2030 and its full‐scale expansion onwards.

Develop multiple FOW projects of several
hundred MW to 1GW by 2030
We propose that development plans for projects spanningfrom several hundred to GW scale by 2030 are necessary inorder to industrialize, mature, and reduce FOW costs.

The Industry is highly motivated and well‐
prepared
The industry is highly motivated and keen to work with thegovernment to develop domestic industries, reduce costs,
and contribute to Japan's energy policies and global climatechange measures.

FOW is realized on proven technology and can provide astable power supply. Through industrialization and further
maturation, costs can be significantly reduced.

14

15

Glossary and Abbreviation
Term
Anchors
Array Cables
Barge
Bottom‐Fixed Offshore Wind
Capacity Factor
Carbon Neutrality (Japanese definition)
Dynamic Cables
Exclusive Economic Zone (EEZ)
FIT
Floating Offshore Wind
Japanese central system
kW/MW/GWMooring lines
Offshore Oil and Gas Industry
LCOE

Project Finance
Reef
Semi‐Submersible
Ship Registration
Spar
Substructures
Tension mooring
Territorial Waters
Tension Leg Platform

Explanation
Used for fixing the location of floating substructures via mooring lines.
Cables connecting wind turbines to the substation.
A type of substructure with barge‐style floating body.
A type of offshore wind where the foundations are fixed to the seabed. In
this document, it is abbreviated as BFOW.
Usage rate of power facilities as a percentage of actual power generation
to the maximum capacity that the facility can generate. For offshore wind,
the power generation depends on the weather and there will be times withno wind, resulting in capacity factor below 100%.
A state where the net emission of greenhouse gas emissions is zero.
Electrical cables that are not fixed to the seabed and move dynamically inthe waters.
Areas within 200NM from the coastal baseline. In EEZ, the sovereigncountry has exclusive rights for fishing and usage of resources and rights toregulate marine contamination.
Abbreviation of Feed‐in Tariff. A government policy in which powercompanies procure power generated by renewable energies at a fixed cost
for a fixed period.
A type of offshore wind installation where the wind turbines are set on
floating substructures. The substructures are moored to the seabed bymooring lines and anchors. In this document, it is abbreviated as FOW.
A government‐led system for project formation, where the government
leads necessary preparations for FOW such as wind resource, metocean,and geographical assessments and grid capacity procurement.
Units of power. 1,000kW=MW. 1,000MW=GW.
Ropes or chains that is used to fix the location of floating substructures.
An industry that extracts oil and gas from beneath the sea and develops
infrastructure for extraction and production of oil and gas.
The cost of power generation facilities throughout its lifetime (project
development, manufacturing, construction/installment, operation andmaintenance, decommissioning) divided by the total power generated in
its lifetime.
Financing of specific projects which treats cash flow produced by the
projects as resources to return the debts and limits collateral debt
protection to project resources.
Areas underwater where structures such as rocks or artificial structures
attract marine species to hide, live or reproduce.
A type of substructure with semi‐submerged floating body.
Certification of ships and related organizations based on technologicalstandards. In Japan, the tower, substructure, mooring components are
required to satisfy Ship Safety Act and need to be registered by certification
organizations.
A type of substructure with a cylindrical floating body with a low center ofgravity.
One of the key components of offshore wind power plants representing
the foundation of the wind turbines. In floating, substructures can beclassified into semi‐submersible, spar, TLP, and barge type.
Mooring using the tension forces between the substructure and the anchor
in the seabed.
Area of the sea within 12NM (equivalent to ~ 22.2km) from shore.
A type of substructure with a semi‐submersible floating body fixed bytension mooring.

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18

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Disclaimer
This report is aimed at providing information on floating offshore wind and does not take individual
circumstances into account. The report has been prepared based on information available at that time and may
not reflect the latest information. This report does not guarantee the accuracy, completeness, usefulness or
safety, or its fitness for a particular purpose, and does not accept any duty, liability or responsibility to any party
for any result, loss or damages for any use of this report.

Photo
Cover: Equinor, Hywind Scotland
Chapter 2: Ocean Winds, WindFloat Atlantic
Chapter 3: Equinor, Hywind Scotland
Chapter 5: Toda Corporation, Haenkaze (Photograph by Hoichi Nishiyama)
Chapter 8: Toda Corporation, Haenkaze (Photograph by Hoichi Nishiyama)

Report Cooperation
Mitsubishi Research Institute, Inc.

Expectation and Foresight of FOW in Japan
Key for decarbonization in Japan
September 2021

Japan’s Floating Offshore Wind Group