In a major boost for South Korea's shipbuilding and construction sectors, two industrial giants have clinched a monumental deal in the renewable energy space. Hanwha Ocean and Hyundai Engineering & Construction (Hyundai E&C) have jointly secured a contract valued at a staggering $2.9 billion (approximately 4 trillion Korean won) to construct a critical offshore wind power project.
A Landmark Deal in Taiwanese Waters
The contract, awarded by a leading Taiwanese offshore wind power developer, focuses on the Greater Changhua 2b and 4 offshore wind farm projects. The core of this ambitious undertaking is the engineering, procurement, and construction (EPC) of a high-voltage alternating current (HVAC) offshore substation. This crucial piece of infrastructure will be responsible for collecting and transmitting the electricity generated by the wind turbines back to the mainland grid.
This project is not just another construction job; it represents one of the largest single contracts ever secured in the global offshore wind power sector for a substation. The scale of the deal underscores the growing complexity and investment flowing into renewable energy infrastructure worldwide.
Division of Expertise and Project Timeline
The two Korean companies will bring their specialized skills to the table in a clear division of labor. Hanwha Ocean, leveraging its decades of expertise in complex shipbuilding and offshore structures, will take charge of the design, procurement, and construction of the offshore substation's top-side platform. This is the functional heart of the station that houses the electrical equipment.
Meanwhile, Hyundai E&C will utilize its formidable prowess in civil and plant engineering to handle the design, procurement, and construction of the substation's jacket foundation—the massive steel structure that will be fixed to the seabed to support the platform above water. The project is slated to kick off immediately, with completion targeted for 2029.
Strategic Significance and Global Implications
This victory is strategically significant for several reasons. Firstly, it solidifies South Korea's position as a serious and competitive player in the high-value global offshore wind market, moving beyond traditional shipbuilding into integrated energy solutions. Secondly, it provides a substantial and stable revenue stream for both companies, with Hanwha Ocean's share reported to be around $1.63 billion (2.2 trillion won) and Hyundai E&C's around $1.27 billion (1.7 trillion won).
The deal also highlights Taiwan's aggressive push towards renewable energy as part of its energy transition goals. For the global market, it signals that large-scale, capital-intensive offshore wind projects are moving forward, requiring the collaboration of industrial heavyweights with complementary technical skills. The success of this project could pave the way for more such joint ventures between major Korean industrials in the international green energy arena.
In conclusion, the $2.9 billion contract awarded to Hanwha Ocean and Hyundai E&C is more than a business transaction. It is a powerful testament to the evolving landscape of global energy, where traditional industrial leaders are pivoting to harness the winds of change and power a more sustainable future.
