| Lee Ju-tae (left), president of Posco Holdings, and Per Mejnert Kristensen, president of Orsted Asia Pacific, hold a partnership certificate on Wednesday at the Posco Center in Gangnam-gu, southern Seoul. (Posco Holdings) |
Korea’s steelmaking giant Posco Group announced Friday that it partnered with Orsted to build Korea’s largest offshore wind farm in Incheon, reinforcing its foothold in a sector poised for rapid growth under government-led green energy initiatives.
The 1.4-gigawatt project, approved in 2023, is projected to generate enough electricity to power about 1 million households.
Under the agreement, Posco will work with the Danish renewable energy leader on the supply of high-strength steel, construction of onshore and offshore facilities, and operations and maintenance for the Incheon project, while also exploring further collaboration on Orsted’s other developments.
The group plans to leverage the strengths of its key subsidiaries, including steelmaker Posco, builder Posco E&C and trading arm Posco International, all of which have extensive experience in offshore wind projects.
To address carbon emissions from its core steelmaking operations, Posco has been ramping up investments in wind power. It is also participating in a 750-megawatt offshore wind development in Ulsan in partnership with Norwegian energy company Equinor.
To accelerate the Incheon project, Posco and Orsted will form a joint working group to explore further collaboration and finalize details, the company said.
Posco’s participation in the Incheon project is expected to pave the way for broader involvement in future offshore wind developments, as demand grows under Korea’s renewable energy transition policies.
The government has set a target of expanding the nation’s offshore wind capacity from the current 0.35 gigawatts to 14 gigawatts by 2030.
“Posco Group will concentrate its business capabilities and expertise, accumulated across the entire supply chain of offshore power projects in Korea, to enhance the competitiveness of the nation’s offshore wind industry and to accelerate the spread of renewable energy,” said Lee Ju-tae, president and representative director of Posco Holdings.
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