Ørsted signs large-scale supply contract with Korea’s HSG Sungdong for suction bucket jacket foundations

Ørsted has signed a supply contract worth hundreds of billions of KRW with HSG Sungdong Shipbuilding, a Korean company located in Tongyeong, Gyeongsangnam-do, South Korea, to supply offshore wind foundations for its 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan. The contract was finalized with Ørsted’s final investment decision on March 31 for the Greater Changhua 2b and 4 project, which it aims to complete by the end of 2025.
(Left to right) Svend Olling, Ambassador of the Embassy of Denmark in Korea, Seung-Ho Choe, Country Manager of Ørsted Korea, Lee Jin-sang, CEO of HSG Sungdong, Jonas Bak Solhøj, Ørsted APAC of Development Director for Greater Changhua 2b and 4 Offshore Wind Farms
Ørsted's 920 MW Greater Changhua 2b and 4 project, located 35 - 60 km from the Changhua coast was awarded in June 2018 in Taiwan’s first competitive price-based auction. Ørsted subsequently signed a corporate power purchase agreement (CPPA) in July 2020 with Taiwan Semiconductor Manufacturing Company Limited (TSMC), which is the largest-ever CPPA of its kind in renewable energy. 

Ørsted will receive 33 foundations from HSG Sungdong Shipbuilding for Greater Changhua 2b and 4 project. Each foundation supports a 14 MW offshore wind turbine with a height of 84 m and a width of 50 m.

This contract is HSG Sungdong Shipbuilding's first direct supply contract signed with a global offshore wind company since it was founded, and is the largest offshore wind foundation supply contract in Korea this year.

Jin Sang Lee, CEO of HSG Sungdong Shipbuilding, said: “Offshore wind foundations require sophisticated technology because they must be durable to prevent corrosion of parts that are in contact with seawater, and the supplier needs to secure and maintain large-scale sites, facilities, and supply chain experience to enter the global market, which is why super-large structures must be manufactured. Through this contract with Ørsted, HSG Sungdong Shipbuilding has been recognized for its technological prowess and competitiveness in the field of offshore wind foundations. And we are now able to lay the groundwork to join Ørsted’s global supply chain for offshore wind.” 

In 2013, in the early days of Korea’s offshore wind industry, Ørsted recognized Korea’s offshore wind supply chain potential and began establishing strong cooperative relationships with local suppliers in Korea. Over the past decade, Ørsted has worked with many Korean companies in the offshore wind sector, including steel, tower, foundation and submarine cable manufacturers, to help Korean suppliers to establish themselves as leading global suppliers. To date, Ørsted has signed more than KRW 3 trillion worth in equipment supply contracts with Korean companies for Ørsted's offshore wind projects around the world.

Seung-Ho Choe, Country Manager for Ørsted Korea, said: “Ørsted has a long-term commitment to Korea. We have been screening the Korean market to identify potential suppliers with technological capabilities. We are ready to strengthen ties with local suppliers to help establish the domestic offshore wind supply chain and also continue to support Korea’s rise in the global offshore wind industry.” 

Ørsted is the first to introduce suction bucket jacket foundations at Greater Changhua 2b and 4 project among its large-scale offshore wind farms in the Asia-Pacific region. Suction bucket jacket foundations are a state-of-the-art environmentally-friendly technology that use inverted bucket-type foundations with suction. HSG Sungdong Shipbuilding is supplying Ørsted with suction bucket-type foundations rather than general jacket-type foundations.

Jonas Bak Solhøj, Development Director for Greater Changhua 2b and 4 offshore wind farms said: “As the global leader in offshore wind we are pleased to work with HSG Sungdong Shipbuilding to build the offshore foundations to the highest standards for safety and quality. These suction bucket jacket foundations will be the first deployment of this technology in Asia Pacific. They will underpin the generation of reliable green energy for decades ahead.”  

Ørsted is a global renewable energy company with a vision of ‘create a world that runs entirely on green energy’.  Ørsted has been the world's No. 1 energy company with development, construction, and operation of 28 offshore wind farms around the world. Ørsted has a 26% share of the global offshore wind market (excluding China) and has installed over 1,900 offshore wind turbines (1 in 4 turbines at sea.)

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