ULSAN, Korea — Korea Floating Wind (KF Wind), through its sponsors Ocean Winds (66.7%) and Aker Offshore Wind (33.3%), has signed a joint development agreement term sheet with East-West Power (EWP) for collaboration on the development of floating offshore wind sites off the coast of Ulsan.
EWP is a state-owned generation company in Korea with more than 9 GW of generation assets and headquartered in Ulsan.
The term sheet is the first step that will be matured as the project progresses toward the final investment decision (FID). The collaboration includes the option for EWP to participate in the project as a shareholder and to provide a long-term offtake agreement for the renewable energy certificates produced by the project.
“The collaboration with East-West Power is a key factor in KF Wind’s path toward FID, as it will enable the project to secure a fixed tariff for a period of 20 years,” said Guzmán Figar, KF Wind project director.
This agreement is the result of the relationship built between the companies that included an EWP delegation visit led by Sangkie Cho, vice president for business development of EWP, to Ocean Winds’ WindFloat Atlantic Project offshore Portugal. The delegation had the chance to see the operating turbines, the operation and maintenance center, the onshore substation, and the dispatch center, which are key elements of the project that KF Wind is developing in Ulsan at a larger scale.
“Now we are learning, thanks to the visit and preliminary discussions of this joint development agreement, how LCOEs can be reduced and how important floating offshore wind will be for the Korean economy,” added EWP CEO Young Moon Kim.
This non-binding term sheet will be further developed in a joint development agreement, which will be presented to the central authority in 2023.