In November last year, the Ministry of Trade, Industry & Energy of the Republic of Korea issued a 1.6 GW electricity business license (EBL) to Ørsted
The MoU signing ceremony. (Credit: Ørsted A/S)
Ørsted and Incheon Metropolitan City, Korea, have entered into a memorandum of understanding (MoU) to collaborate on the advancement of a top-tier offshore wind power sector in the area. The objective of this agreement is to foster the growth of a thriving domestic wind power industry, leveraging Ørsted’s 1.6 GW offshore wind project situated along the coast of Incheon.
In this collaboration, Incheon City will provide administrative support, including efforts to raise local awareness and understanding, and establish policies and infrastructure for offshore wind. Meanwhile, Ørsted will utilise its extensive 30-year experience to develop its projects into a model that benefits local residents, businesses, and suppliers alike.
Representing the Ørsted Group, Thomas Thune Andersen, Chair of Ørsted’s Board of Directors, signed the agreement alongside Yoo Jeong-bok, Mayor of Incheon, during a ceremony at Ørsted’s offices in Greater Copenhagen, 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.
In November 2023, the Ministry of Trade, Industry & Energy of the Republic of Korea issued a 1.6 GW electricity business license (EBL) to Ørsted, granting exclusive development rights for an offshore wind farm situated 70 km off the coast of Incheon. Upon completion, it will stand as Korea’s largest offshore wind farm, playing a crucial role in accelerating the country’s net-zero transition. This endeavor is poised to generate local job opportunities and foster supply chain growth, aligning with Ørsted’s strong sustainability commitments.
The next phases for Ørsted’s Incheon offshore wind project involve conducting environmental impact assessments, carrying out site investigations, and preparing for participation in Korea’s annual fixed-price wind auction.
Pending successful outcomes of these processes and Ørsted’s final investment decision, the project is anticipated to reach completion in the early 2030s.
Ørsted’s Incheon project holds significant potential to contribute to Incheon City’s net-zero target by supplying renewable energy to over 1 million Korean households and reducing carbon emissions by approximately 4 million tonnes annually.
Ørsted Board of Directors chair Thomas Thune Andersen said: “Ørsted 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.”