Norway's Deep Wind Offshore turns compass toward Korea with 4GW East West Power tie-up
Developer makes first foray out of Nordic region via deal with state-owned utility set to encompass four projects, both floating and bottom-fixed, off the Asian island nation
Norwegian developer Deep Wind Offshore (DWO) has added 4GW to its international project portfolio via a strategic beachhead deal in South Korea with state-owned utility East West Power (EWP).
DWO’s first tie-up outside of the Nordics, the agreement is seen as a key step in the company’s ambition to build its current 10GW pipeline into 10TWh of production by 2032.
“For us, South Korea probably represents the biggest potential, both in terms of size of portfolio and route to market. It is one of the most buoyant offshore wind markets globally. There is already a lot of early-stage projects ongoing, with some starting to be more mature.”
The memorandum of understanding with EWP, which is responsible for over 11GW of all power generation facilities in South Korea, covers collaboration on four projects, both floating and bottom fixed.
Vassbotn said the tie-up’s industrial logic is built on DWO’s backing from local Norwegian utility Haugaland Kraft/SKL, meaning the company “clearly understands the importance of integrating electrical power production from a renewable source with the existing power production and grid”, and shipping giant Knutsen OAS, which over the last three decades has been “a major client” to the Korean shipyards.
Vassbotn reckons there is a “clear benefit” to the rapidly evolving international offshore wind market in the emergence of a class of independent developers, such as DWO, which are plying inventive models for operation.
“We are seeing time and time again, that the agility that an independent developer can offer is clearly needed. Fortunately, there is significant interest for offshore wind from a broad spectre of companies and segments, from oil & as companies to utilities and financials.
“The market is growing so fast, developers and governments are struggling to keep up the pace. This will change when offshore wind becomes a more mature industry, but it is too early to say when that will be.”
Vassbotn added: “We are extremely excited to collaborate with EWP on these projects. The complementary capabilities of our companies create a solid foundation for successfully developing the projects to benefit the energy transition in Korea and provide opportunities for the national supply chain and local communities.”
South Korea, Taiwan, Japan and Vietnam have all moved forward with plans for tens of gigawatts of ofshore wind plant construction in the coming decades, with floating arrays expected to play a big part in many of developments given these island nations’ steep continental shelves and deep water areas.