Hanwha Ocean and another major South Korean shipbuilder have secured contracts to build wind turbine installation vessels (WTIVs) for domestic companies. The combined value of these contracts is approximately $951 million, reports KED Global.
Offshore Wind Turbine
A WTIV (Wind Turbine Installation Vessel) is a specialized ship designed for installing offshore wind turbines. These vessels are typically priced between 700 billion won and 800 billion won.
Hanwha, in collaboration with an unidentified Korean shipbuilder, has secured orders to construct two WTIVs. One vessel is intended for an energy company, while the other is for a construction firm.
These orders are seen as crucial for securing Korea’s position in the growing offshore wind market, which is currently facing competition from Chinese and European companies.
Korea aims to significantly expand its offshore wind power generation capacity from 0.13 GW to 14.3 GW by 2030, requiring the annual addition of 2 GW of capacity.
Demand Increasing
The Korean offshore wind turbine construction market has been vulnerable to competition from European and Chinese firms due to a limited number of large WTIVs.
The construction of these two new WTIVs will provide Korea with a significant competitive advantage in the domestic offshore wind market.
Demand for large offshore WTIVs is steadily increasing globally due to the growing focus on renewable energy sources, particularly offshore wind power.
Korea is a leading player in the WTIV market, with Hanwha Ocean and Samsung Heavy Industries having secured orders for four and three WTIVs, respectively, primarily for overseas clients. While Korea has established itself as a leader in WTIV construction, the domestic market currently relies heavily on a single WTIV, limiting its capacity to build larger turbines.
Wind Power Market
Industry officials believe that the latest WTIV contracts will significantly enhance the competitive position of Korean shipbuilders in the domestic offshore wind power market. The Korean offshore wind power market is projected to experience substantial growth, with an expected capacity of 14.3 GW by 2030 and 26.7 GW by 2036. The demand for WTIVs is increasing globally, leading to a 24% increase in charter fees over the past year.
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Source: KED Global
