SK oceanplant seals $286M substructure deal for Taiwanese wind project

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SK oceanplant seals $286M substructure deal for Taiwanese wind project

Published: 04 Jun. 2024, 15:50 Updated: 04 Jun. 2024, 16:10

SARAH CHEA
chea.sarah@joongang.co.kr

SK oceanplant's jackets being exported to a foreign country [SK OCEANPLANT]

SK oceanplant has sealed a $286 million deal to supply fixed offshore wind turbine foundations to Taiwan.

Under the deal signed with project leader Copenhagen Infrastructure Partners, SK oceanplant, which is 38 percent owned by SK ecoplant, will supply the foundations, known as jackets, for the Fengmiao 1 Wind Power Project.

The deal's price tag is equivalent to 43 percent of the Korean company's total sales last year. The deal extends to Oct. 12, 2026.

SK oceanplant's jackets being exported to a foreign country [SK OCEANPLANT]

The Fengmiao 1 project aims to develop a 500-megawatt offshore wind power complex located 35 kilometers off the coast of Taichung City in western Taiwan. Construction is slated to begin in 2025, with operations expected to start in 2027.

The Taiwanese government is proceeding to construct offshore wind power complexes generating 15 gigawatts in five phrases by 2035.

SK oceanplant will provide the three-legged substructures used at fixed offshore wind farms. The Korean firm is the largest supplier of jackets in Asia, and currently claims 44 percent of the wind substructure market in Taiwan.

The company is currently building a jacket production facility on a 1.57 million-square-meter (16.9 million-square-feet) site in South Gyeongsang, with a goal of completion in 2026.

"By strengthening the production capacity of various offshore wind structures like jackets and buoyant substructures like floaters, the new production facility will play a critical role in targeting offshore wind markets in and outside of Korea," said Lee Seung-chul, the CEO of SK oceanplant.

"SK ecoplant, our parent company, owns its own technology for floaters, which will create some synergy."

BY SARAH CHEA [chea.sarah@joongang.co.kr]