Ørsted has entered into a memorandum of understanding (MoU) with Incheon Metropolitan City, South Korea, to collaborate on developing a world-class offshore wind power industry in the region.
The city is a key transportation hub known for its bustling international airport and seaport. Renowned for modern developments like Songdo International Business District, it holds cultural significance with landmarks like Chinatown and has hosted major events like the 2014 Asian Games.
This agreement aims to establish a thriving local wind power industry, focusing on Ørsted’s 1.6 GW offshore wind project off the coast of Incheon.
Ørsted and Incheon Metropolitan City – MoU and Incheon Project
In November 2023, the Ministry of Trade, Industry & Energy of the Republic of Korea issued a 1.6 GW electricity business license (EBL), granting Ørsted exclusive development rights for an offshore wind farm situated 70 km off the coast of Incheon.
This project is poised to become the largest of its kind in Korea upon completion, contributing to the country’s net-zero transition, fostering local employment, and creating opportunities within the supply chain.
Under the memorandum of understanding (MoU), Incheon City will offer administrative support, enhance local awareness, and establish policies and infrastructure for offshore wind, while Ørsted will draw on its over 30 years of experience to develop exemplary projects beneficial to local stakeholders.
Incheon Offshore Wind Farm - Project Next Steps
The upcoming phases for Ørsted’s Incheon offshore wind project involve:
- Conducting environmental impact assessments,
- Performingsite investigations.
- Preparing to participate in Korea’s annual fixed-price wind auction.
Upon successfully completing these processes and Ørsted making a final investment decision, the project is anticipated to be finalized in the early 2030s.
Ørsted’s Incheon project holds the potential to contribute to Incheon City’s net-zero target by delivering renewable energy to over 1 million Korean households and reducing carbon emissions by approximately 4 million tonnes annually.
Suggested Reading: Final Investment Decision (FID): What is it?
Ørsted and Incheon City – Leadership comments on the MoU
Representing the Ørsted Group, Thomas Thune Andersen, Chair of Ørsted’s Board of Directors, officially signed the agreement alongside Yoo Jeong-bok, Mayor of Incheon, at a ceremony held at Ørsted’s offices in Greater Copenhagen, Denmark.
Lars Aagaard, Danish Minister for Climate, Energy & Utilities, Kim Hyung Gil, Korean Ambassador to Denmark, and Svend Olling, Danish Ambassador to Korea, also attended the event.
Thomas Thune Andersen, Chair of the Board of Directors of Ørsted A/S, expressed, “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.”
Yoo Jeong-bok, Incheon Metropolitan City Mayor, added, “Offshore wind is a powerful means of achieving decarbonization and a new industry that can grow sustainably. I expect that today’s agreement with Ørsted will help revitalize 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.”
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