Orsted has signed a memorandum of understanding (MoU) with Incheon Metropolitan City, South Korea, to cooperate on developing a regional offshore wind sector.
The aim of the agreement is to establish a successful local wind power industry driven by Orsted’s 1.6GW offshore wind project off the coast of Incheon.
Through this collaboration, Incheon City will provide administrative support, including enhancing local awareness and understanding and establish policies and infrastructure for offshore wind.
Orsted will leverage its more than 30 years of experience to develop its projects into an “exemplary model that will be of mutual benefit to local residents, businesses and suppliers”.
On behalf of Orsted, Thomas Thune Andersen, Chair of Orsted’s Board of Directors, signed the agreement together with Yoo Jeong-bok, Mayor of Incheon, at a ceremony at Orsted’s offices in Greater Copenhagen in Denmark.
The event was attended by Lars Aagaard, Danish Minister for Climate, Energy & Utilities, Kim Hyung Gil, Korean Ambassador to Denmark, and Svend Olling, Danish Ambassador to Korea.
Thune Andersen said: “Orsted will work closely with the City of Incheon to launch a new offshore wind industry and boost local economic development in the region.
“We have a strong track record working with Korean suppliers in our global portfolio over the past decade.
“We’ll build on this legacy of collaboration with our Incheon project, which will lead the way for a thriving offshore wind industry by generating reliable renewable energy, attracting long-term investments, and creating jobs.”
Yoo said: “Offshore wind is a powerful means of achieving decarbonisation and a new industry that can grow sustainably.
“I expect that today’s agreement with Orsted will help revitalise our local economy, boost the supply chain, and become a great opportunity for the growth of offshore wind power projects that benefit the region and the growth of our local industry.”
The Ministry of Trade, Industry & Energy of the Republic of Korea issued a 1.6GW electricity business license (EBL) in November 2023, granting Orsted exclusive development rights for an offshore wind farm located 70 km off the coast of Incheon.
The next steps for the Incheon offshore wind project include environmental impact assessments, site investigations, and preparations for participating in Korea’s annual fixed-price wind auction.
Subject to the successful outcome of these processes and Orsted taking final investment decision, the project is expected to be completed in the early 2030s.