Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) has finalized a landmark Engineering, Procurement, and Construction (EPC) contract for the 390 MW Shinan Ui offshore wind project. The deal represents the first major success for Hanwha's newly established Energy Plant Division and underscores a strategic pivot from traditional shipbuilding to high-margin "eco-friendly" energy infrastructure.
Project & Financial Architecture
The contract, signed as a turnkey agreement, officially consolidates the project's move into the execution phase after nearly a decade of development delays.
- Total Project Value: KRW 2.64 Trillion (~US$1.79 Billion).
- Hanwha Ocean Share: KRW 1.97 Trillion (~US$1.3 Billion).
- Hyundai E&C Share: KRW 668.4 Billion (~US$480 Million).
- Equity Partners: The consortium includes Korea Midland Power (KOMIPO), Hyundai E&C, and SK Eternix.
- Financing (PF): Led by Korea Development Bank (KDB) and KB Kookmin Bank.
- The Future Energy Fund: Plans an injection of KRW 544 Billion (~US$368.6 Million) through equity and subordinated debt.
Technical Specifications & Timeline
The Shinan Ui project serves as a critical cornerstone for South Korea's national mandate to achieve 25 GW of offshore wind capacity by 2035. The project timeline is structured around a three-year construction window following the finalization of financial arrangements.
Key Milestones and Schedule:
- Financial Closing: Project Financing (PF) is currently being finalized by lead arrangers, with a target completion date of early 2026.
- Construction Phase: Full-scale groundbreaking is scheduled for 2026, with an estimated 36-month construction period.
- Specialized Installation: Hanwha Ocean will deploy its proprietary 15MW-class Wind Turbine Installation Vessel (WTIV) to the site during the first half of 2028.
- Commercial Operation Date (COD): The farm is expected to achieve final delivery and grid connection by June 2029.
Technical Infrastructure:
The site will feature 26 units of the Vestas V236-15.0 MW turbines, among the largest and most efficient in the market. Supporting infrastructure includes 32.5km of high-voltage subsea cabling and a dedicated offshore substation, which will be engineered and installed by partner Hyundai E&C. In a move to revitalize the local maritime sector, Hanwha has committed to a "Localization First" strategy, utilizing domestic suppliers for all major components and substructures.
Strategic Analysis: The "EPCIO" Model
This contract marks Hanwha Ocean’s shift to the EPCIO (Engineering, Procurement, Construction, Installation, and Operation) model. By building its own Wind Turbine Installation Vessel (WTIV) - a first for a South Korean shipyard - Hanwha is vertically integrating the value chain.
Philippe Levy, President of Hanwha Ocean’s Energy Plant Division, noted:
The Shinan Ui contract is a pivotal turning point. We are moving beyond the role of a shipbuilder to become a core provider of renewable energy infrastructure, leveraging our design-to-installation capabilities.
→ For more industry insights, explore all Tocco Reports & Toccographics
