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Hanwha Ocean & Hyundai E&C Win $1.8B Offshore Wind Farm Contract in Korea

Hanwha Ocean and Hyundai E&C have secured a major engineering, procurement, and construction contract for the Shinan-Ui offshore wind project, valued at 2.64 trillion won (approximately $1.79 billion). The 390-megawatt farm will be built in waters southeast of Uido Island in Sinan County. Hanwha Ocean, leading the development with a 1.97 trillion won share, is responsible for permits and community engagement, marking its formal entry into the offshore wind sector. The project, backed by a consortium including Korea Midland Power and supported by major banks, aims to boost domestic industry and create jobs as Korea invests in renewable energy.

Key Points: $1.8B Korean Offshore Wind Project Awarded to Hanwha Ocean, Hyundai E&C

  • $1.8 billion project value
  • 390-megawatt offshore wind farm
  • Hanwha Ocean's formal sector entry
  • Focus on permits and community engagement
2 min read

Hanwha Ocean and Hyundai E&C secure major offshore wind project

Hanwha Ocean and Hyundai E&C secure a 2.64 trillion won ($1.79B) EPC contract for the 390MW Shinan-Ui offshore wind farm, marking Hanwha's major sector entry.

"Hanwha Ocean's share of the contract amounts to 1.97 trillion won. - Hanwha Ocean"

Seoul, December 24

Hanwha Ocean, Hyundai E&C win offshore wind project to build a large power farm in the sea, securing an engineering, procurement, and construction contract. This major move marked the formal entry of Hanwha Ocean into the offshore wind power sector. The company secured a big contract to design, buy materials, and build the project.

As per a report by Pulse, the English service of Maeil Business News Korea, the companies signed the agreement on Tuesday. The total value of the entire project reached 2.64 trillion won (USD 1.79 billion). This amount is equal to about 1.80 billion dollars. Hanwha Ocean took a large portion of this work. The company announced that "Hanwha Ocean's share of the contract amounts to 1.97 trillion won."

The work focused on a specific plan called the Shinan-Ui offshore wind project. This project involved the building of a 390-megawatt wind farm. The farm sat in the waters southeast of Uido Island. This island is located in Sinan County within the South Jeolla Province. The project aimed to use the wind over the ocean to create clean electricity for the region.

Hanwha Ocean managed many of the early steps for the development. The company looked after the process of getting permit approvals from the government. The team also focused on community engagement. This meant the company talked to the local people to include them in the plan. While Hanwha Ocean led these efforts, several other groups joined as shareholders. These partners included Korea Midland Power, Hyundai E&C, and SK eternix.

For project financing, Korea Development Bank and KB Kookmin Bank have been selected as lead arrangers. A future energy fund formed by the development bank and five major commercial banks plans to invest 544 billion won (USD 368.6 million) through equity participation and subordinated loans, with project financing expected to be completed early next year.

As per the report, Hanwha Ocean said that the project will contribute to revitalizing domestic industries and creating new jobs as Korea expands investment in renewable energy.

- ANI

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Reader Comments

S
Sarah B
$1.8 billion is a huge contract! It's impressive to see such collaboration between major corporations and banks. The focus on community engagement is a good lesson for any large infrastructure project, including in India.
P
Priya S
Good to see Asian nations leading in green tech. While we read about this, I hope our Indian companies like L&T and Adani Green are also securing such large-scale international EPC contracts. Job creation is a key benefit mentioned here – very relevant for us.
R
Rohit P
The project financing model is interesting. Lead arrangers from development and commercial banks. We need more of this structured funding for our renewable goals. But sometimes, I feel our processes get stuck in too much red tape. Speed is important.
M
Meera T
390 MW is a good size. Clean electricity from the sea wind is the future. Hope the local communities on Uido Island are properly compensated and their concerns heard. That part is often overlooked in our projects back home.
V
Vikram M
Hanwha Ocean is diversifying from shipbuilding. Smart move. Indian corporates should also look at such strategic pivots into sunrise sectors. However, the article is a bit repetitive on the contract value. Could have explained the technology more.

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