SK E&S and Copenhagen Infrastructure Partners have reached financial close on the 99MW Jeonnam 1 offshore wind project in South Korea.
Construction of the wind farm off the coast of Shinan County, Jeonnam Province is expected by the end of 2024.
Jeonnam Offshore Wind Power was founded in 2020 as a 51-49 JV between SK E&S and Copenhagen Infrastructure Partners (CIP) and the project is expected to become the first South Korean commercial scale offshore wind farm to go into operation in 2024.
The project has been developed by a joint team comprised by SK E&S and Copenhagen Offshore Partners (COP), the exclusive offshore wind development partner to CIP.
SK E&S and CIP are also jointly developing Jeonnam 2 and Jeonnam 3, two offshore wind projects with a total capacity of 800MW currently in the development phase.
Jeonnam 1, 2 and 3 will support South Korea’s ambitious target of reaching 14.3GW of offshore wind power by 2030, a significant increase compared to the existing 0.1GW installd today.
Jeonnam Offshore Wind Power obtained a electricity business license in 2017 and entered a grid connection agreement with KEPCO, the state-owned utility in South Korea, allowing the project to connect to the grid during 2024.
In 2022, Jeonnam I was awarded a 20-year fixed-price offtake agreement with Korea Hydro & Nuclear Power through South Korea’s first wind offtake auction.
Throughout 2022, the project also signed manufacturing and construction contracts with South Korean suppliers including Hyundai Engineering and Steel Industries, Hyundai Electric and Gaon, KT Submarine and LS Cable and System.
The project will utilize Mokpo New Port as marshalling port throughout construction, given the port’s location near the Jeonnam 1 site.
Jeonnam 1 chief executive Daniel Yun said: “SK E&S is proud to be leading the offshore wind industry in Korea with this landmark project.
“Jeonnam 1 is expected to provide green electricity equivalent to approximately 60,000 households in Kore.”
Torsten Lodberg Smed, senior partner at CIP, added: “Korea has a vast potential for offshore wind and CIP has, since entering the Korean market in 2018, invested significantly in developing the country’s wind power projects in multi-giga watts scale and its supply networks and foster a strong industry ecosystem.
“We are proud to have reached financial close and entering the construction phase on Jeonnam 1 and we look forward to completing this landmark project together with our partners.
“CIP is also pursuing partnerships in Korea regarding the development and supply of blue and green ammonia into Korea to further facilitate Korea’s green transition.”