SK ecoplant is positioning itself as a domestic powerhouse in offshore wind power, one of the most prominent eco-friendly energy business alongside the solar power business.
SK ecoplant is jointly developing an offshore wind power ocean energy project. The project is to build floating and fixed offshore wind farms in five regions of Korea, including Ulsan and South Jeolla Province, with Corio Generation and Total Energy. The project includes the construction of a 1.5 GW floating offshore wind farm located in an exclusive economic zone (EEZ) in waters about 60 kilometers off Ulsan Port. The wind farm will be the largest in the world once completed.
Corio Generation, a British offshore wind company that is working with SK ecoplant on the project, said that it will invest US$1 billion in ongoing and planned offshore wind projects in South Korea. The United Kingdom is a global powerhouse in offshore wind, with 13.9 GW of installed capacity as of July. The country has set a goal of increasing its offshore wind capacity to 50 GW by 2030 and is actively engaging both U.K. and international companies to build supply chains. SK ecoplant may receive orders for offshore wind farms in the United Kingdom.
As global companies continue to invest in Korea, SK ecoplant’s subsidiary, SK oceanplant, is also expected to win orders. SK oceanplant is Asia’s No. 1 offshore wind substructure manufacturer. The company signed an agreement with Corio in March to strengthen cooperation on 6.8 GW offshore wind projects in six domestic and international locations including the United Kingdom, Australia, Taiwan, and the city of Busan in Korea. Corio will develop projects and its partner, SK oceanplant, will manufacture and deliver offshore wind substructures. SK oceanplant will be responsible for manufacturing and supplying offshore wind substructures and offshore substations, while Corio offshore wind power project development, investment, and management.
Recent positive signs for the offshore wind power business are expected to have a positive impact on SK ecoplant’s corporate value. In September, SK ecoplant and SK oceanplant were selected as the preferred bidders for the Anma Wind Power Project in Korea and are expected to sign a contract on it. The company has also completed bids for other domestic offshore wind power projects such as the Shinan Wooi Offshore Wind Power Project and the Geumil Offshore Wind Power Project.
SK ecoplant has been active in landing both domestic and overseas orders. In Taiwan’s offshore wind power market where 5.6 GW of orders have been completed, SK oceanplant has won a total of 193 orders for jackets (a substructure that supports offshore wind generators on the seabed). These orders have already fully booked SK oceanplant’s yards. To alleviate this, SK oceanplant is building a third yard of 1.57 million square meters, which is more than 1.7 times larger than the combined area of the first and second yards. The company has also established an outsourced manufacturing system with 24 domestic offshore wind power core equipment companies. The area of the offshore production site is 1.85 million square meters.
SK ecoplant is also making preparations to revitalize its floating offshore wind power business. The company has secured floating offshore wind technology capabilities based on the development of a Korean-style floating wind farm in cooperation with POSCO. The floating wind farm has been certified by DNV, a Norwegian shipping classification society. Floating wind farms can be installed in deeper waters than fixed offshore wind farms, which gives the former more freedom in terms of location conditions.