Oil refinery invests in wind energy

One of Japan's largest oil refineries is tripled the investments in wind energy to compensate for the fall in fuel consumption. Despite the initiative, it is not known whether the measure will be sufficient to revive the profits.
Cosmo Energy Holdings will invest 93 billion yen (US $880 million) in offshore wind power over the next five years, which will account for about a quarter of the company's total spending, and will reduce oil-related investments by 22%.
Still, the expansion in renewable energy is insufficient to compensate for the decline of the main business, which is the sale of fuel, considering that net profit should fall to only 50 billion yen in the period of one year that will end in March 2023 , against 70 billion yen in the current fiscal year, reported to Cosmo.
Betting on wind energy is better than doing nothing, but the Japanese government should continue to reduce the incentive program created to promote renewable energy, which means that wind energy can become less profitable, said Hidetoshi Shioda, Analyst at the Circle Cross Corp research firm. "The expansion to wind power can be a case of trial and error," said Shioda. "But if Cosmo doesn't act, it's basically just waiting for death." Source: Uol Economics
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