9.4 Billion! Shipbuilding Giant Lands Major Offshore Wind Power Order

Recently, Hanwha Ocean (formerly Daewoo Shipbuilding) announced it has secured the EPC (Engineering, Procurement, and Construction) turnkey contract for South Korea's Shinan UI Offshore Wind Farm Project.

The project will be jointly executed by Hanwha Ocean and Hyundai Engineering & Construction (Hyundai E&C), with a total contract value of KRW 264 billion (approximately RMB 12.5 billion). Hanwha Ocean's share of the contract amounts to KRW 197.16 billion (approximately RMB 9.4 billion).

Located off Shinan UI Island in Shinan County, South Jeolla Province, southwest Korea, the Shinan UI Offshore Wind Project has a planned capacity of 390 megawatts (MW). It serves as a key component of Korea's Shinan Offshore Wind Industrial Complex, one of the world's largest offshore wind development clusters with a total capacity of 8.2 gigawatts (GW).

As a major offshore wind project led by domestic Korean companies, Hanwha Ocean has been responsible for systematic management aspects including permit compliance and community acceptance for the Shinan Ui Offshore Wind Project. Shareholders participating in the project include Korea Midland Power (KOMIPO) and SK Eternix, a publicly listed Korean private wind power company.

To secure funding, Korea Development Bank (KDB) and Korea National Bank (KB) were selected as project financing (PF) intermediaries. The Future Energy Fund, established for renewable energy investments, plans to inject 544 billion won (approximately 2.585 billion RMB) through equity investments and subordinated loans, with financing expected to be finalized by early 2026.

Hanwha Ocean plans to involve more Korean companies in core project segments such as submarine cable laying, substructure fabrication, and offshore installation to create jobs and foster a robust industrial ecosystem. Additionally, the company aims to independently build Korea's first large-scale Wind Turbine Installation Vessel (WTIV) capable of installing 15MW-class offshore wind turbines. Scheduled for deployment in the first half of 2028, this vessel will contribute to domestic supply chain localization.

The Global Offshore Wind Report released this year by the Global Wind Energy Council (GWEC) forecasts that the offshore wind industry will achieve a compound annual growth rate (CAGR) of 21% over the next decade, with global cumulative installed capacity expanding from 83GW in 2024 to 441GW by 2034. Conversely, South Korea's market will remain at approximately 0.35GW by 2025 due to constraints including cumbersome permitting processes, low public acceptance, and funding challenges. The South Korean government aims to expand infrastructure such as ports and vessels to achieve a total offshore wind capacity of 25GW by 2035.

In August this year, Hanwha Ocean signed a Memorandum of Understanding (MOU) with Hyundai Engineering & Construction for cooperation on domestic offshore wind projects. Starting with the Shin-an offshore wind project, the two companies plan to form an “offshore wind team” and build a long-term partnership. They emphasized that this initiative aims to strengthen the localization of the core supply chain for South Korea's domestic offshore wind industry and enhance energy security. Under the agreement, the partners will establish an EPC (Engineering, Procurement, and Construction) relationship and enhance collaboration to elevate the autonomy of the domestic supply network.

In December 2024, Hanwha Ocean acquired Hanwha Engineering & Construction's wind power business for KRW 188.1 billion (approximately RMB 970 million). Having secured permits for offshore wind projects totaling 2GW of installed capacity—including the Sinan project—the company possesses the capability to simultaneously advance development and construction, steadily expanding its influence in the offshore wind market. Building on this foundation and leveraging its experience in constructing large-scale WTIVs, Hanwha Ocean has established the basis for independently supplying core equipment for domestic offshore wind power.

Additionally, late last year, Hanwha Ocean secured an order from Hyundai Engineering & Construction for a large WTIV capable of installing 15MW-class offshore wind turbines, valued between 700 billion and 800 billion won (approximately 3.5 to 4 billion RMB). This WTIV model boasts an annual installation capacity of 700 to 800 megawatts.

In November this year, to enhance competitiveness in offshore wind power and integrated EPC solutions for onshore and offshore equipment, Hanwha Ocean restructured its offshore equipment business—which had seen no new orders for three consecutive years. Its Offshore Business Unit (OBU) absorbed the Energy & Infrastructure Business Unit (E&I), reorganizing into the Energy Project Equipment Business Unit (EPU).