LS Cable & System, a cable solution provider based in South Korea, has partnered with Hanwha Corporation, a leading construction company, to develop the biggest offshore wind farm in South Korea.
On Wednesday, LS Cable & System announced its selection for the “Sinan-Ui offshore wind power project,” led by Hanwha Corporation. As part of this partnership, LS Cable & System will supply submarine cables for the ongoing project in Sinan County, South Jeolla Province.
The Sinan-based project aims to construct a 400-megawatt offshore wind farm. It will have three times greater cumulative capacity than the domestic offshore 124 megawatts of wind power of last year.
Under the terms of the partnership, LS Cable & System is responsible for supplying the undersea or submarine cables required for the development of the offshore wind farm and its connection to the mainland by 2025.
Completion period set by LS Cable & System and Hanwha
The anticipated value of the contract between LS Cable & System and Hanwha Corporation is approximately $77 million (100 billion won). Both companies have set a target completion date of 2026 for the Sinan-Ui project. They are also ready to promptly commence contract negotiations, with a focus on product specifications and other critical aspects.
According to LS Cable & System, Chinese companies have dominated the solar power industry with their performance and are now looking to enter the offshore wind energy market. The new partnership between LS Cable & System and Hanwha Corporation aims to ensure safety and security in the local industrial environment.
The total installed capacity of approved offshore wind energy projects in South Korea is 20 gigawatts. Industry analysts estimate that the total size of the market could surpass 100 trillion won.
A report by Mordor Intelligence indicates that the pandemic negatively affected South Korea’s wind power market. However, it has since recovered. The Korean government is implementing measures to reduce dependency on fossil fuels.
The government has also committed to increasing the share of renewable energy by 2030. The projection indicates that wind power capacity will reach 17.7 gigawatts by 2030. The overall wind energy market will expand in the future.
The onshore wind power segment is one of the major sectors in South Korea. But it still faces complexities, including local resistance and environmental challenges.
Therefore, the Korean government has shifted its focus toward offshore wind power. This shift is also expected to result in increased investment and the establishment of R&D projects in wind technology.
