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News Release2018

Oct. 24, 2018

Wind Power Project Office to be Established
as of November 1

JGC to Enter the Field of Offshore Wind Power

Yokohama, Japan – JGC Corporation announced today its intention to establish an organization dedicated to pursuing engineering, procurement and construction (EPC) projects in offshore wind power generation, many of which are planned in Japan and internationally.  This represents an initial step in concerted efforts toward further business expansion in the field of renewable power generation, as outlined in the Beyond the Horizon medium-term business plan.

 To be established on November 1st this year, the Wind Power Project Office will be under the direct control of the president and will serve to consolidate activities from project cultivation and estimation to execution within a single organization.

 Wind power is positioned as a key source of renewable energy in Japan, according to the nation’s fifth Strategic Energy Plan, published in July this year by the Agency for Natural Resources and Energy.  According to the plan, it may potentially account for 90 GW, or approximately one-third of the total domestic power generation capacity.  Moreover, although most wind power generation in Japan has been land-based, offshore wind power is expected to expand.  With dozens of projects slated for Hokkaido, Tohoku, Kyushu, and elsewhere, the emerging offshore wind power market is also attracting international interest.

Global wind power capacity reached 539 GW at the end of 2017.  An increase of 55% in this level is predicted by 2022.

In moving aggressively into this new market of offshore wind power generation, JGC will apply experience gained from more than 20,000 projects in 80 countries worldwide.  JGC’s project management capabilities enable it to optimally orchestrate all aspects of EPC plans through its command of wide-ranging engineering technologies as well as its expertise in procurement and deployment on a global scale.  This makes it possible to bring the ideal equipment for each project on-site exactly as needed.

One strategy enabling a prompt entry into the field of offshore power involves collaboration with experienced overseas engineering contractors.  Also under consideration are partnerships with foreign and domestic power equipment manufacturers.

 Business activities have already begun in preparation for this move.  JGC is involved in feasibility studies and front-end engineering and design (FEED) works aimed at receiving EPC orders for  offshore wind power projects in Japan.  At the same time, other activities are also underway targeting orders for similar wind power projects in Vietnam, Taiwan, and elsewhere in Asia.

A basic policy of JGC identified in the Beyond the Horizon medium-term business plan (covering five years from fiscal 2016) is to expand business in the field of infrastructure, focusing on power generation.  In this respect as well, renewable energy represents a core field.  JGC has already taken part in many EPC projects for foreign and domestic large-scale solar power plants and biomass power plants.  Actively working in the field of offshore wind power will not only expand the JGC business portfolio, but also contribute to the global development and spread of renewable energy.


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