Danish energy company Orsted has signed a memorandum of understanding (MoU) with the South Korean utility Korea Southern Power (KOSPO) to jointly develop an 800MW offshore wind facility in Ongjin, Incheon.
The project is a part of a 1.6GW offshore cluster that will deliver clean energy to 1.3 million South Korean households while displacing four million tonnes of carbon emissions a year.
Ørsted Deputy Group CEO Martin Neubert said: "This MoU marks an important milestone for the Incheon offshore wind projects to receive secured revenues, taking us one step closer towards making the flagship wind farms a reality.
"We are confident that by leveraging our more than 30 years of global experience, as well as the know-how and local expertise of KOSPO, we will adapt to the Korean market and form a strong team to foster a vibrant offshore wind industry to create local benefits and economic opportunities, making significant contributions to support Korea in achieving its ambitious 12GW offshore wind target."
The two companies have also agreed to explore key collaboration areas of Ørsted's Incheon offshore wind projects such as joint operation and technology exchange.
KOSPO president Seung-Woo Lee said: "The MoU with Ørsted, the world's leading company in the offshore wind industry, will be of great help to our company's expansion of the new and renewable energy business.
"I expect that it will not only achieve the government's energy transition goal, but also speed up Korea's large-scale offshore wind power development."
KOSPO aims to 'lead the global standard in the new energy industry' by working towards carbon neutrality and providing clean, stable energy.
The company is currently expanding its renewable assets such as solar and wind power projects, fuel cells and eco-friendly liquid natural gas (LNG) power sources.
Last month, Ørsted signed power purchase agreements with pharmaceutical company Johnson & Johnson and technology giant Google for the supply of carbon-free energy.