Shinan-Ui Offshore Wind Project Breaks Ground... KRW 3.4 Trillion All-Domestic Investment Kicks Off in Earnest

First Project of the National Growth Fund—40% of Total Investment Raised from Policy Funds
Key Equipment Localized Except Turbines
Supplying Power to Honam AI Data Centers and Semiconductor Industry Expected

Seonghwan Kim, Minister of Climate, Energy and Environment (center), attended the groundbreaking ceremony for the Sinan Wooi Offshore Wind Power Project held on the 16th at the Sinan National Sports Center in Sinan-gun, Gwangju, Jeollanam-do, and took a commemorative photo with project officials after the ceremony. Ministry of Climate.

The Shinan-Ui Offshore Wind Power Complex broke ground on July 16. This is South Korea’s first large-scale offshore wind power project to be promoted entirely with domestic capital, with a total investment of KRW 3.4 trillion and the goal of commencing commercial operation in 2029. The government plans to use this project as an opportunity to scale up the domestic offshore wind power supply chain and expand the clean electricity base needed for advanced industries in the Honam region, including AI data centers and semiconductors.

The Ministry of Climate, Energy and Environment held the “Shinan-Ui Offshore Wind Power Project Groundbreaking Ceremony” at the Shinan National Sports Center in Shinan-gun, Gwangju Metropolitan City, Jeollanam-do, on this day. The Shinan-Ui Offshore Wind Power project will establish a 390 MW wind farm offshore to the southeast of Ui-do in Shinan-gun, with a total project cost of about KRW 3.4 trillion.

This project is the nation’s first large-scale offshore wind power project to be developed purely with domestic capital, with participation from Hanwha Ocean, Korea Midland Power, SK EterNix, and Hyundai Engineering & Construction. For the first time in South Korea, 15 MW-class large offshore wind turbines will be installed.

In particular, the project was selected as the first investment project of the National Growth Fund and will raise about 40% of its total cost—KRW 1.3 trillion—through the National Growth Fund and Future Energy Fund. The government explained that this arrangement improves financial stability for offshore wind power projects, which face a heavy initial investment burden, and has enabled a timely groundbreaking.

The wind farm will install 26 units of 15 MW-class turbines and is expected to generate about 1,062 GWh of electricity per year, which is enough to power approximately 300,000 households. In terms of shareholding, the Future Energy Fund holds 40%, Hanwha Ocean 26%, Korea Midland Power 19%, SK EterNix 10%, and Hyundai Engineering & Construction 5%.

The government also expects the project to contribute to expanding the domestic offshore wind power supply chain. Domestic companies will participate in key equipment fields, including substructures (excluding the turbines), subsea cables, and installation vessels. Hanwha Ocean will build a turbine installation vessel (WTIV) worth about KRW 800 billion for the project. Hyundae Steel Industries will supply the substructures, and LS Cable will provide the subsea cables.

The project will also introduce a model in which local residents can participate and share profits through community funds and other such mechanisms. The government aims to promote both regional coexistence and the expansion of the domestic offshore wind industry ecosystem through this approach.

Seonghwan Kim, Minister of Climate, Energy and Environment, stated, “The Shinan-Ui offshore wind power project is the country’s first large-scale offshore wind project promoted solely with domestic capital and is a core project to strengthen both clean power supply and the domestic industrial ecosystem. We will actively support not only the achievement of the 10.5 GW offshore wind target for 2030, but also the stable supply of electricity for the three mega-projects in the Honam region, such as AI data centers and semiconductors.”

This content was produced with the assistance of AI translation services.