Osaka Gas had planned to build a 1.2-gigawatt (GW) coal-fired power station in Ube, Hiroshima, aiming to start operations around 2026, with partners Electric Power Development (J-Power) and Ube Industries Ltd.

The move by Osaka Gas comes after other Japanese companies have withdrawn from new coal-fired power projects amid growing global pressure for companies to divest coal assets due to environmental concerns.