Principle Power, Sungdong addressing South Korea’s floating wind ambitions

June 24, 2024
Principle Power and HSG Sungdong have signed a non-exclusive memorandum of understanding concerning mass production and assembly of WindFloat structures.

Offshore staff

EMERYVILLE, CAPrinciple Power and HSG Sungdong signed a non-exclusive memorandum of understanding last week concerning mass production and assembly of WindFloat structures.

The aim is to assist development of a local supply chain in South Korea to support the government’s target of 14.3 GW of offshore wind capacity by 2030.

Lúcio Rodrigues, head of supply chain and procurement at Principle Power, said, “We will provide HSG Sungdong with high-quality inputs on WindFloat design, specifications and lessons learned to support their efforts to optimize their facilities and processes for the fabrication and assembly of floating wind foundations cost-effectively and at scale…

“We are working together to build optimized delivery scenarios for floating wind projects in Korea and export markets that use local expertise and existing shipyard capabilities. Our goal is to foster a robust and sustainable supply chain ecosystem through early engagement with select suppliers to build readiness for the timely and effective delivery of floating wind projects."

Jinsang Lee, CEO of HSG Sungdong, added, “The goal of the two companies is to establish a supply system ready to deliver industrial scale floating offshore wind projects by combining the technological experiences of 75-MW floating offshore wind farms that Principle Power has already implemented globally and HSG Sungdong's optimized manufacturing facilities (substructure fabrication, marshaling yard, integration) with excellent manufacturing technology.”

To achieve the 14.3-GW offshore wind goal, South Korea’s government has established an annual auction system offering fixed-price contracts for offshore wind projects that includes a multiplier mechanism designed to help launch a domestic floating offshore wind industry.

Auctions for the country’s first floating wind projects are scheduled for the third quarter.