Toshiba Corp and General Electric are reportedly in talks to jointly produce equipment used in offshore wind power generation. Offshore wind power is seen by Toshiba as a promising business area as the Japanese infrastructure conglomerate seeks to focus more on renewable energy. The two firms are expected to reach a tie-up next month, the sources said.
The talks have centered on the potential joint production of nacelles, key equipment that houses a generator and other components of a wind turbine. The companies are also considering expanding the scope to other equipment as well as maintenance and operation services. In addition to Japan, Toshiba and GE are looking to cooperate in the offshore wind power business in other Asian countries.
Toshiba has set its goal of expanding its renewable energy business to 650 billion yen ($6.1 billion) in fiscal 2030 from 190 billion yen in fiscal 2019. It has stopped taking new orders for building coal-fired power plants.
The Japanese government has pledged to bring CO2 missions to net zero by 2050 as part of its efforts to battle climate change. It is aiming to boost the capacity of offshore wind power generation in the country to a maximum 45 million kilowatts by 2040 while also seeking to increase the domestic procurement ratio of parts used in offshore wind power generation equipment to 60 per cent by the same year.