Shell, CoensHexicon set up Korean floating wind JV for 1.4-GW project

A unit of Dutch oil and gas major Royal Dutch Shell Plc (AMS:RDSA) has formalised the creation of a joint venture with CoensHexicon Co Ltd with the objective of developing and operating a 1.4-GW floating wind farm off the south-east coast of South Korea.

The two parties announced their plan to jointly develop a Korean project two years ago and have now established the firm that will be in charge of the scheme -- MunmuBaram Co Ltd. Shell Overseas Investment BV holds an 80% stake in the JV, while CoensHexicon has the remaining 20%. The latter itself is a JV between Swedish engineering company Hexicon AB and Korean service provider Coens Co Ltd.

The plan is to build the wind park in an area of about 240 sq km, located between 65 km and 80 km from the city of Ulsan. Presently, the scheme is going through a feasibility assessment and is expected to be developed in phases. Over the past year, the developers have been collecting various measurements, including critical offshore wind data at the project location, with which they intend to apply for an Electricity Business License (EBL) this month.

The project will support South Korea’s efforts to increase domestic renewable energy generation to 20% of the energy mix by 2030 and to become carbon neutral by 2050.

“Korea’s capabilities in the fabrication of offshore facilities and shipbuilding could play a pivotal role in the development and fabrication of floating offshore wind foundations not only for Korea but also for the region and beyond,” commented Joe Nai, Shell’s General Manager, Offshore Wind Asia.

Steve Seo, CEO of CoensHexcion, noted that the company is also developing new areas in South Korea in addition to the current project.

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