Danish energy company Orsted has secured exclusive rights to build South Korea’s largest offshore wind power complex in a project estimated at 8 trillion won ($6.1 billion).
Orsted said on Thursday it has been granted a business license for a 1.6-gigawatt (GW) wind power project from Korea's Ministry of Trade, Industry and Energy.
Under the project, it plans to build a wind farm complex, 70 kilometers off the coast of Incheon, the country’s largest west-coast port city, by the early 2030s.
The facility will generate enough electricity to power over a million households, while reducing carbon emissions by about 4 million tons a year, the Danish company said.
The world’s largest wind farm, with a capacity of 1.3GW, is located in waters off the UK.
The Orsted-operated Walney Extension offshore wind farm off the coast of Blackpool, England (Courtesy of Orsted)
NEXT STEPS
In its application for project approval, Orsted said the project was expected to cost 8 trillion won.
To move forward with the Incheon offshore wind farm development, Orsted said the next steps include environmental impact assessments, site investigations and preparations to participate in Korea’s annual fixed-price wind auction.
“At Orsted, we’re pleased to secure our first electricity business license in Korea. We now look forward to helping accelerate the country’s green energy transition and supporting Incheon’s ambitions as a hub for renewable power,” Per Mejnert Kristensen, president of Orsted Asia Pacific, said in a statement.
“Subject to the successful outcome of these processes and Orsted taking the final investment decision, the project is expected to be completed in the early 2030s,” he added.
(Sources: Getty Images)
The Korean wind farm project has faced delays. Korea's energy ministry had twice withheld review of Orsted's application in the face of fishermen’s protests and collective action against the renewable energy project.
Fishermen argued that an offshore wind farm complex could impact fishing grounds and raised safety concerns because the area overlaps with passenger ship routes to several West Sea islands.
To address such concerns, Ronnie Brandstrup, in charge of Orsted’s Asia Pacific projects developments and programs, said it will continue to engage with local communities to create opportunities for local industries, fishers and residents throughout the project cycle.
