Through its sponsors Ocean Winds (66.7%) and Aker Offshore Wind (33.3%), Korea Floating Wind has signed a term sheet with East-West Power (EWP) to collaborate on the development of a floating windfarm off the coast of Ulsan
The companies described the term sheet as ‘a first step’ as the project progresses towards a final investment decision (FID). They describe the project as ‘the world’s first large-scale floating offshore wind project’ but did not provide an indication of its size.
The agreement includes the option for East West Power to participate in the project as a shareholder and to provide a long-term offtake agreement for the renewable energy certificates produced by it.
KF Wind project director Guzmán Figar said, “Collaboration with East West Power is a key factor in KF Wind’s path towards FID. It will enable the project to secure a fixed tariff for a period of 20 years.”
East-West Power is a state-owned company based in Ulsan with more than 9 GW of generation assets.
East-West Power chief executive Young Moon Kim said, “We are learning how the levelized cost of energy can be reduced and how important floating offshore wind will be for the Korean economy. We are pleased to kick-start such a promising partnership.”
The agreement follows a visit by a delegation from East-West Power led by the company’s vice president for business development Sangkie Cho to Ocean Winds’ WindFloat Atlantic project, offshore Portugal.
The term sheet is non-binding and the project will be further developed under the terms of a joint development agreement, starting in 2023. The companies did not indicate a potential date for the FID.
