Equinor Gets Power Contract Offer for South Korea’s Floating Wind Farm
December 19, 2024
Norwegian energy company Equinor has received an offer from the South Korean government for a fixed-price power purchase agreement for a 750-megawatt (MW) floating offshore wind project, the company said on Thursday.
"We have received an offer for an offtake contract for our Bandibuli project," an Equinor spokesperson told Reuters.
The company will now work with the South Korean authorities on the details of the offer before potentially signing a contract, the spokesperson added.
Floating offshore wind is still an immature technology requiring government support and, at 750 MW, Bandibuli is one of the biggest floating offshore wind projects globally.
A final investment decision for the project, located 70 km (43.5 miles) off the south-east coast of South Korea, is at least one to two years away and is dependent on ensuring a competitive return, the spokesperson said.
Equinor is also seeking a partner for the project, he added.
South Korea's Ministry of Trade, Industry and Energy (MOTIE) announced earlier on Thursday that the 2024 bidding round had awarded 1,886 MW of fixed-price contracts for offshore wind, including a first award for a floating wind project.
The ceiling price for the tender had been set at 176,565 won ($121.96) per megawatt hour (MWh).
However, including a multiplication factor to reflect technology and location of projects, the offer for floating wind was around 500,000 won, roughly $350/MWh, a source familiar with the conditions said
By comparison, a 400-MW floating offshore wind farm off Scotland was awarded a strike price of 139.93 pounds ($176.35), quoted in 2012 prices, at an auction round in September.
($1 = 1,447.7700 won)
($1 = 0.7935 pounds)
(Reuters - Reporting by Nora Buli, Editing by Mark Potter)
