Samsung Heavy Industries Enters Offshore Wind Sector with Equinor

A long-term supplier to the offshore energy sector, Samsung Heavy Industries looks to leverage its expertise to expand into offshore wind farms. Through a series of agreements with Norway’s Equinor, the companies plan to work together if Equinor is successful in its bid to build a large floating offshore wind farm near Ulsan, South Korea.

The companies highlight they have worked together for more than 20 years on numerous oil and gas projects. This however would be SHI’s first foray into renewable energy and the offshore wind sector. 

Samsung Heavy Industries signed an exclusive agreement with Equinor to supply floating wind turbine substructures for the proposed Bandibuli Offshore Wind Farm. Equinor has the project under development and working with the authorities in Ulsan to obtain the necessary agreements. The company reported in July that it received approval of the Environmental Impact Assessment for the wind farm. The assessment launched in December 2021 after the Bandibuli project obtained an electric business license.

Equinor notes that achieving the milestone allows the Bandibuli project to participate in the fixed-price contract auction for wind power projects. One of the elements for the auction is local participation and they look to enhance this through the agreements with SHI. South Korea plans to select a developer for the wind farm this year.

“Together, we have achieved significant milestones in the oil and gas sector. Now we are excited to bring our combined expertise to develop robust and investible projects in the renewable energy sector. The Bandibuli project is testament to our shared commitment to advancing the energy transition in Korea,” said Anders Opedal, President & CEO of Equinor.

Equinor signed an MoU with Ulsan city in May 2019 for the development of a 750MW floating wind farm offshore Ulsan. The company secured rights for two areas approximately 40 miles off the coast of South Korea. The plan calls for 50 floating installations each with a 15 MW wind turbine. It has been called the world's largest offshore floating wind farm. 

Under today’s agreement, SHI would build the structures for the turbines. The company last month reported they were also planning marshaling services for the integration of the turbines onto floaters and would use SHI’s Shinhannae Yard located in Geoje. It would provide local value creation, which is a key requirement for the project as it moves forward into the power purchase agreement auction.

Turbine integration onto a floating substructure is a new industry in Korea, notes Samsung Heavy Industries. Through this cooperation on Bandibuli, the company says there will be technology transfer to Korea ensuring that it will be in prime position in this expanding global market segment.