Jul. 31, 2024
JGC Holdings Corporation
Sumitomo CorporationJGC Japan Corporation and Sumitomo Corporation Agree to Establish
Supply Chain for Floating Offshore Wind Power Generation- Eliminating bottlenecks in the offshore wind power industry and contributing to therealization of a decarbonized society JGC Japan Corporation (Head Office: Yokohama, Kanagawa Prefecture; President and CEO: Yasuharu
Yamaguchi), a domestic EPC1 operating company of JGC Holdings Corporation, and Sumitomo
Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief ExecutiveOfficer: Shingo Ueno) signed an agreement on July 26, 2024 to investigate the possibility ofcollaboration in the detailed design, manufacture and delivery of floating structural components(“floater components”) in the floating offshore wind (“FOW”) power generation sector.
With the aims of reducing costs, enhancing efficiency and achieving mass production in theproduction and supply system by leveraging the strengths of respective partners, the two companies
will examine the possibility of collaboration in the following key areas to establish a supply chain for
floater components.
• Detailed design of floater components based on floating foundation design• Development of steel and shipbuilding manufacturers as partners in the manufacture of floater
components, order placement and manufacturing management• Transportation of floater components to base ports for offshore wind power generation

Major floating structure technologies for offshore wind turbine (enclosed sections)Global FOW power generation capacity is forecast to increase from approximately 0.2 GW in 2022 to269 GW in 2050,2 and approximately 800 new units are expected to be installed annually around2050.3 While there is a need to develop floatier components for larger wind turbines, technologicaldevelopment is still in its infancy, and a supply chain has yet to be established. The supply of floater
components is not keeping up with ever-increasing demand for offshore wind turbines, which is likely
to cause a bottleneck in the expansion of the FOW power generation market.
In 2018, the JGC Group established a department dedicated to entering the offshore wind power
generation sector, which it has positioned as a focus area for "Energy Transition" in the "Business
Area Transformation" section of its long-term management "2040 Vision," as well as a focus area for"Establishment of Future Growth Engines" in the key strategies of its mid-term management plan
"BSP 2025," and is currently working to enter and expand this business.
Sumitomo Corporation is an active investor in the field of offshore wind power generation and hasinvested in a company that owns heavy lift vessels (Netherlands) and a company that owns andoperates vessels that transport engineers and equipment to wind turbines under construction(Norway). Sumitomo Corporation is also the representative company in a consortium for a power
generation project off the coast of Enoshima Island in Saikai, Nagasaki Prefecture, and is indiscussions with Oshima Shipbuilding (Co., Ltd.) a member of the Sumitomo Corporation Group, witha view to utilizing its large-scale shipbuilding facilities and mass production technology in themanufacture of floating structures.
JGC Group and Sumitomo Corporation Group will continue to explore establishing a supply chain inthe offshore wind power generation field from varied perspectives, with a view to realizing a carbonneutral society.

1

EPC: Engineering, Procurement, Construction

2According to research conducted by DNV, an international certification body3

Estimated by Sumitomo Corporation based on data from consulting firm Wood Mackenzie

Inquiries
JGC Holdings Corporation
Public Relations Group, Strategic Planning Unit, Strategy Planning Office
Date / Okii
+81-45-682-8026
jgcpr@jgc.com
Sumitomo Corporation
Communication Team, Corporate Communications Department+81-3-6285-3100
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