Tokyo Gas Buys Stake in Portugal's WindFloat Atlantic

Tokyo Gas, Japan's leading natural gas provider, is making significant strides in the floating offshore wind sector as the country’s offshore wind industry begins to gain momentum. The company, which has previously invested in Principle Power, a US based developer of floating foundations, is now expanding its footprint by acquiring a stake in WindFloat Atlantic, the pioneering floating semi-submerged offshore wind farm in Portugal.

Under the terms of the deal, Tokyo Gas will purchase a 21.2 percent stake in WindFloat Atlantic from Ocean Winds, a joint venture between the Portuguese utility EDP and France’s Engie. Ocean Winds is also a key investor in Principle Power, alongside Tokyo Gas. This investment marks Tokyo Gas's first foray into an international floating offshore wind project. WindFloat Atlantic is situated approximately 12 miles off the northern coast of Portugal in the Atlantic Ocean.

The project has been operational since 2020 and features three floating wind turbines, each with a capacity of 8.4 MW, culminating in a total output of 25 MW. The development of this project spanned a decade and was designed to showcase the viability of floating offshore wind technology. It employs Principle Power’s WindFloat floating foundation system, which Tokyo Gas emphasises is capable of withstanding conditions with waves up to 65 feet high and wind speeds exceeding 86 mph.

This acquisition aligns with Tokyo Gas's strategic goals to leverage the knowledge and experience gained from international ventures to advance the commercialisation of floating offshore wind power in Japan. Kentaro Kimoto, Executive Vice President and Head of GX Company at Tokyo Gas, stated that the company aims to use insights from this project to develop large-scale floating offshore wind farms in Japan. This includes acquiring advanced operational and maintenance practices that utilise digital and next-generation technologies.

Japan is particularly suited for floating offshore wind farms due to its deep coastal waters, which are not ideal for traditional fixed-bottom turbines. The Japanese government has set ambitious targets for offshore wind energy, aiming for 10 GW of capacity by 2030 through a mix of fixed-bottom and floating turbines. Looking further ahead, Japan plans to escalate its offshore wind capacity to 45 GW by 2040.

Ocean Winds, launched in 2019, has set its own ambitious goals, seeking to have between 5 and 7 GW of offshore wind capacity either in operation or under construction by 2025, with an additional 5 to 10 GW in the development phase. Through its investment in WindFloat Atlantic, Tokyo Gas is positioning itself to be at the forefront of this burgeoning sector and to contribute to Japan’s expanding offshore wind energy capabilities.