South Korea’s shipbuilding and offshore industry is increasingly focusing on offshore wind power as a future growth engine, aligning with the global shift toward renewable energy. With the global offshore wind market projected by the International Energy Agency (IEA) to grow at an average annual rate of 13%, reaching $1 trillion (approximately 1,335 trillion won) by 2040, South Korean companies are enhancing their technological capabilities in this field.
Samsung Heavy Industries recently signed a preferred supplier agreement with Equinor, a Norwegian state-owned energy company, to supply equipment for the Bandibuli (Firefly) floating offshore wind project off the coast of Ulsan. This project, located 60-70 km offshore, aims to generate up to 750 megawatts (MW) of electricity.
Floating offshore wind power generates electricity from turbines mounted on buoyant platforms in the open sea, where stronger winds can be harnessed more effectively than with fixed turbines near the coast. According to the Ministry of Trade, Industry and Energy, this method is far more space-efficient than solar power, requiring just one-fifth the area per gigawatt-hour (GWh).
The Ministry is set to auction five floating offshore wind projects off the coast of Ulsan, with a total capacity of up to 3 GW. Key players in these projects include Copenhagen Infrastructure Partners (CIP), Green Investment Group (GIG), TotalEnergies, and Equinor. Typically, constructing floating offshore wind facilities costs around $5.24 billion (7 trillion won) per GW, with the Bandibuli project alone expected to attract over 5 trillion won in investment.
Should Equinor be chosen as the final project operator, Samsung Heavy Industries will be responsible for manufacturing the bottom buoyant structures for 50 15MW-class turbines and managing the assembly process.
Meanwhile, Hanwha Ocean launched a wind turbine installation vessel (WTIV) for Danish offshore wind company Cadeler in June, following a 2021 contract. This vessel, capable of carrying five large 15MW turbines, is designed to install turbines in waters up to 65 meters deep. Hanwha Ocean has already delivered two WTIVs and is constructing two more.
HD Korea Shipbuilding & Offshore Engineering (HD KSOE) is enhancing its offshore wind capabilities by leasing part of the yard and facilities at Subic Shipyard in the Philippines for manufacturing wind substructures. The company plans to invest approximately $550 million (about 734.2 billion won) over the next decade. Additionally, HD Hyundai Heavy Industries has signed a Memorandum of Understanding (MOU) with Scottish Enterprise to collaborate in the floating offshore wind sector, with plans to expand through overseas production bases like Subic.
Mid-sized shipbuilders are also entering the market. HSG Sungdong Shipbuilding recently completed its first offshore wind substructure, part of a contract with Denmark’s Ørsted to supply substructures for the 920MW Greater Changhua Offshore Wind Farm in Taiwan.
Similarly, SK oceanplant extended its contract with Anma Offshore Wind Power to manufacture and supply substructures for a 532MW wind farm near Anma Island, located about 40 km off the coast of Yeonggwang-gun, Jeollanam-do.
