Toshiba Corp. is in talks with U.S. firm General Electric Co. to jointly produce equipment used in offshore wind power generation, sources with knowledge of the matter said Monday.
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 of the tie-up to other equipment, as well as the provision of maintenance and operation services.
Offshore wind power generation is regarded as a viable power generation alternative for Japan, an island nation that could make better use of its sea breeze.
In addition to Japan, Toshiba and GE are also looking to cooperate in the offshore wind power sector in other Asian countries, the sources said.
Toshiba has set a goal to expand its renewable energy business to ¥650 billion ($6.1 billion) in fiscal 2030 from ¥190 billion in fiscal 2019. It has stopped taking new orders to build coal-fired power plants.
The government has pledged to reduce carbon dioxide 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 of 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% by the same year.