05 2022. Ulsan, Korea. Korea Floating Wind (“KF Wind”), through its sponsors Ocean Winds (66.7%) and Aker Offshore Wind (33.3%), has signed a Joint Development Agreement (JDA) Term Sheet with East-West Power (EWP), a state-owned generation company in Korea, for collaboration on the development of floating offshore wind sites off the coast of Ulsan.
The Term Sheet is the first step that will be matured as the project progresses towards the final investment decision (FID). The collaboration includes the option for East West Power to participate in the project as a shareholder and to provide a long-term offtake agreement for the Renewable Energy Certificates produced by the project.
“The collaboration with East West Power is a key factor in KF Wind’s path towards FID as it will enable the project to secure a fixed tariff for a period of 20 years. East-West Power, a state-owned company with over 9 GW of generation assets and headquartered in Ulsan, is the best partner we could conceive and will bring a lot of new capabilities to the project,” commented Guzmán Figar, Project Director for KF Wind.
“Now we are learning, thanks to the visit and preliminary discussions of this JDA, how LCOEs can be reduced and how important floating offshore wind will be for the Korean economy. We are thankful to kick-start such a promising partnership,” said Young Moon Kim, CEO of East West Power.
This agreement is the result of the strong relationship built between the companies that included an EWP delegation visit led by Mr. Sangkie Cho, Vice President for Business Development of EWP, to Ocean Winds’ WindFloat Atlantic Project, offshore Portugal. The delegation had the chance to see the operating turbines, the operation and maintenance center, the onshore substation, and the dispatch center; all key elements of the project that KF Wind is developing in Ulsan at a larger scale.
This Term Sheet is non-binding and will be further developed in a joint development agreement which will be presented to the central authority next year.