Principle Power signs MoU with HSG Sungdong to advance serial manufacturing of WindFloat® floating wind foundations in Korea

By: Chloe Emanuel

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21/06/2024 Principle Power

Principle Power has entered a non-exclusive Memorandum of Understanding (MoU) with HSG Sungdong to collaborate on the engineering and mass production of WindFloat® technologies. This strategic agreement aims to support Korea’s goal of reaching 14.3 GW of offshore wind capacity by 2030 by developing a sustainable domestic supply chain.

Key Objectives and Benefits of the MoU:

Engineering and Manufacturing Synergy:

- Principle Power will share its extensive expertise and knowledge on WindFloat® design and specifications.
- HSG Sungdong will leverage its formidable manufacturing capabilities to optimise facilities and processes for the cost-effective and scalable fabrication of floating wind foundations.

Global and Local Impact:

- The collaboration aims to build optimised delivery scenarios for floating wind projects in Korea and for export markets.
- By utilising local expertise and existing shipyard capabilities, the partnership will support the creation of a robust supply chain ecosystem.

Commitment to Sustainability:

- The agreement supports Korea's transition to a low-carbon and green economy by fostering early engagement with suppliers.
- It ensures high-quality and economically feasible floating offshore wind structures, contributing to the development of eco-friendly solutions for future industries.

Leadership Perspectives:

- Lúcio Rodrigues, Head of Supply Chain and Procurement at Principle Power, emphasised the importance of early engagement with suppliers to build readiness and confidence for delivering floating wind projects.
- Jinsang Lee, CEO of HSG Sungdong, highlighted the collaboration's goal to establish a supply system ready to deliver industrial-scale floating offshore wind projects, combining the technological experiences of Principle Power with HSG Sungdong's optimised manufacturing facilities.

Government Support and Market Readiness:

- Korea’s government has set up an annual auction system with fixed-price contracts and REC multipliers to incentivise the launch of a domestic floating offshore wind industry.
- The first floating projects are expected to be auctioned in Q3 2024, with the supply chain committed to establishing the necessary capacity contingent on supportive national policies and realistic price levels.

This MoU marks a significant step toward achieving Korea's ambitious offshore wind targets, leveraging the strengths of both Principle Power and HSG Sungdong to pioneer the mass production of floating offshore wind substructures and foster a sustainable and reliable supply chain for the industry.

For more information about offshore wind farm projects across the globe, click here.

About the Author

4C Offshore | Chloe Emanuel
Chloe Emanuel

Press Coordinator

01502 307037