Daigas G&P Solution scrapped the Tomato-Atsuma onshore wind project due to rising costs, the company announced on August 19, 2025.
According to the statement, the company concluded that it would be difficult to ensure the financial viability of the project in Atsuma City, Hokkaido, following a review of construction and other costs after last year’s price increases. It informed METI and local governments of the decision in accordance with the Environmental Impact Assessment Act.
Tomato-Atsuma’s environmental impact assessment process was launched in May 2020 and advanced to the methodology stage in March 2021. It was downscaled from the originally planned up to 38MW to 34.4MW in the most recent, draft report stage, which it reached in August 2024. In April 2025, Kyodo reported that the company planned to halve the capacity due to concerns raised by the Ministry of the Environment and other stakeholders.
Daigas G&P Solution currently has stakes in seven operational onshore wind farms totaling over 135MW alongside a portfolio of thermal, solar, and biomass power plants. Most recently, in September 2021, it commissioned the 25.3MW Shiribetsu Wind Power Plant in Hokkaido. It was eyeing March 2026 groundbreaking and April 2028 COD for Tomato-Atsuma.
The cancellation highlights how inflation and the weak yen are testing the financial soundness of both operational and under-development projects. The issue is affecting not only onshore but also offshore wind and other technologies, with METI planning countermeasures for its offshore wind auctions and Teikoku Databank having reported that a record number of power generators went out of business in FY2024.
