Danish offshore wind giant Ørsted and South Korean conglomerate Posco Group have inked a memorandum of understanding to collaborate on offshore wind and renewable hydrogen.
The deal should strengthen the ties between the two companies, after previously working together on Ørsted’s Hornsea 1 and three other offshore wind farms.
Posco will support the development of Ørsted’s 1.6 GW offshore wind projects off Incheon City, and conduct feasibility studies on potential collaboration on renewable hydrogen with Ørsted.
In December 2020, Posco joined Korea’s decarbonisation declaration, and placed its hydrogen business as one of its growth engines for the group.
Ørsted recently started construction of its first renewable hydrogen demonstration project, H2RES in Denmark and is involved in nine renewable hydrogen projects in Denmark, Germany, the Netherlands, and the United Kingdom.
South Korea has set a target of installing 12 GW offshore wind capacity by 2030.
According to Ørsted, Incheon 1.6 GW project will provide clean energy to power up to 1.4m Korean households and a reduction of almost 4m mt of CO2 per year. Subject to permits, off-take agreement, and final investment decision, the project could be commissioned in 2026 or 2027.