Danish firm Ørsted to invest $7.2 bn to build offshore wind farm in Korea
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The Dutch green energy company the offshore power project at the 2020 Ørsted Wind Industry Promotion Forum held at Conrad Seoul on Tuesday. Around 100 to 140 wind turbines will be installed 20 kilometers off Deokjeok Island in Incheon, Korea’s western port city that is also home to the main air gateway to the capital.
The Danish company has been collecting data on wind condition near the Incheon shore since May by installing four units of floating equipment, Ørsted Asia-Pacific President Matthias Bausenwein said. He added that the wind farm will be constructed 70 kilometers off the coast of Incheon and 20 kilometers off some surrounding islands. Commercial operation is expected begin as early as 2026.
The mega project will be a huge boon for Korean companies because at least half of the 8 trillion won investment will likely be used in manufacturing structural materials, cables and components. The Danish company invited some Korean firms whom it has worked with in the past projects, including Posco, LS Cable & System and Hyundai Engineering & Steel Industries to the forum to ask for cooperation.
Shares of Posco were 0.6 percent higher at 246,000 won by midday Wednesday. The two others are unlisted.
LS Cable on Tuesday signed a contract with Ørsted to become a preferred supplier of extra high voltage submarine cable for the next five years. Industry sources estimate the deal is valued at some hundreds of billions of won.
"Ørsted's projects in Incheon will support a thriving offshore wind industry in South Korea and contribute to the realization of the government's target of 12GW offshore wind capacity by 2030," Bausenwein said.
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