SK Ecoplant to build offshore wind farms in waters off Korean coasts

September 29, 2022

A bird’s-eye view of an offshore wind farm to be built by SK Ecoplant

SK Ecoplant is set to emerge as a major player in the domestic offshore wind power market. Through M&As and technology development, the company has secured expertise across the entire value chain of the offshore wind power business. It is seeking to go beyond the domestic market and establish itself as a key player in the global market.

In early September, SK Ecoplant signed an agreement with Corio Generation, a global investment company, Green Investment Group (GIG), an offshore wind power development company, and TotalEnergies, a global energy giant, to jointly promote offshore wind power projects in Korea.

It plans to secure a stake in the Ocean Energy Project, which is promoted by Corio and TotalEnergies, to build and operate 2.6GW offshore wind power generation farms with floating and fixed generators in the seas off Ulsan Metropolitan City and South Jeolla Province.

In particular, this project includes the 1.5GW Gray Whale Project, which will be the world’s largest floating offshore wind farm. The scientific name of the gray whale is Okhotsk Korea Gray Whale. It is the only whale on the planet that includes Korea in its name. The project’s name reflects a desire to restore the environment and bring back the gray whale to Korea.

The amount of electric power to be generated by SK Ecoplant’s offshore wind farms overwhelms that of land-based wind farms, which have been established mostly at mountainous areas. The estimated combined capacity of the five wind farms of the Ocean Energy Project is 2.6GW, which is equivalent to 7,900GWh in terms of annual power generation. This can replace one 1GW nuclear power plant and supply electricity to 2.6 million households for a year.

SK Ecoplant plans to increase its competitiveness in the offshore wind power business through speedy and bold M&A deals. An example is the acquisition of SamKang MNT, which manufactures offshore wind power substructures.

SamKang MNT is a manufacturer of thick steel plates, vessels and plant structures. Listed on the KOSDAQ stock market in 2008, the company has a 930,000-square-meter yard and a berth in Goseong, South Gyeongsang Province. The yard has the size of 130 soccer fields combined. It possesses the world’s highest level of offshore wind turbine substructure manufacturing capability. An offshore wind turbine substructure is a key item that buttresses a wind power generation turbine.

Source: BusinessKorea