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 EWP 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,” comments Guzmán Figar, project director for KF Wind. “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.”
“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,” states Young Moon Kim, EWP’s CEO. “We are thankful to kick-start such a promising partnership.”
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.