Ørsted 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 local wind power industry driven by Ørsted’s 1.6 GW offshore wind project off the coast of Incheon, the developer said.
Through this collaboration, Incheon City will provide administrative support, including enhancing local awareness and understanding and establishing policies, and infrastructure for offshore wind while Ørsted 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, according to the Danish company.
“Offshore wind is a powerful means of achieving decarbonisation and a new industry that can grow sustainably. I expect that today’s agreement with Ørsted 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,” said Yoo Jeong-bok , Incheon Metropolitan City Mayor.
The Ministry of Trade, Industry & Energy of the Republic of Korea issued a 1.6 GW electricity business license (EBL) in November 2023, granting Ørsted exclusive development rights for an offshore wind farm located 70 kilometres off the coast of Incheon.
The next steps for the company’s Incheon offshore wind project include environmental impact assessments, site investigations, and preparations for participating in South Korea’s annual fixed-price wind auction.
Subject to the successful outcome of these processes and Ørsted taking the final investment decision, the project is expected to be completed in the early 2030s.
Once fully commissioned, the offshore wind farm will provide renewable energy to over one million South Korean households while reducing carbon emissions by approximately four million tonnes annually, said the developer.