Principle Power signs MoU with shipyard HSG Sungdong to advance serial manufacturing of WindFloat® floating wind foundations in Korea

20 June 2024

Principle Power has signed a non-exclusive Memorandum of Understanding (MoU) with HSG Sungdong to cooperate on engineering developments for mass production and assembly of WindFloat® technologies. The agreement furthers the development of a sustainable domestic supply chain in Korea and supports the country's ambition to achieve 14.3 GW of offshore wind capacity by 2030.

Principle Power collaborates with partners globally to help them prepare for the serial manufacturing and delivery of WindFloat® foundations. Through this agreement, we will provide HSG Sungdong with high-quality inputs on WindFloat® design, specifications, and lessons learned to support their efforts to optimize their facilities and processes for the fabrication and assembly of floating wind foundations cost-effectively and at scale.

With Principle Power’s extensive global track-record and operating experience in floating wind, and HSG Sungdong's formidable manufacturing capabilities, we are working together to build optimized delivery scenarios for floating wind projects in Korea and export markets that use local expertise and existing shipyard capabilities.

Our goal is to foster a robust and sustainable supply chain ecosystem through early engagement with select suppliers to build readiness for the timely and effective delivery of floating wind projects. These engagements are an extremely important part of building a new industry the right way, providing customers and government with confidence about deliverability.

Lúcio Rodrigues
— Head of Supply Chain, and Procurement for Principle Power

This MoU between HSG Sungdong and Principle Power targets the world’s first mass-production of floating offshore wind substructure by combining the strengths of both companies.”

The goal of the two companies is to establish a supply system ready to deliver industrial scale floating offshore wind projects by combining the technological experiences of 75MW floating offshore wind farm that Principle Power has already implemented globally and HSG Sungdong's optimized manufacturing facilities (substructure fabrication, marshaling yard, integration) with excellent manufacturing technology.

This collaboration is expected to create an optimal process to stably mass supply the most leading floating offshore wind structures with both quality and economic feasibility to the schedule that customers want. It is also to create social values in line with the transition to low-carbon and green economies and deliver the highest quality floating substructures to customers to play their own role in developing eco-friendly solutions for our future industries.”

Lastly, HSG Sungdong and Principle Power will work together as one team to transform the substructure production paradigm in the offshore wind market.

Jinsang Lee
— Chief Executive Officer for HSG Sungdong

To achieve its 14.3 GW offshore wind goal, the Korean government has implemented an annual auction system offering fixed-price contracts for offshore wind projects that includes REC multiplier mechanism designed to help launch a domestic floating offshore wind industry. Government auctions are scheduled for Q3 2024 for the first floating projects in Korea. Developers and the supply chain are committed to establishing floating offshore wind capacity provided that off-take award conditions are supported by realistic price levels and national policies and regulations allow projects to progress on a predictable schedule.

WindFloat F design is in a fabrication scenario at the HSG Sungdong Shipyard facility in Korea

About Principle Power

Principle Power is a pure play global technology and services company for the floating wind energy market. The company’s proven WindFloat® product portfolio – consisting of the WindFloat T and WindFloat F – is unlocking offshore wind potential worldwide by enabling projects to harvest the best wind resource, irrespective of water depth or seabed condition. Principle Power acts as a trusted partner to developers, independent power producers, utilities and EPCs, supporting its customers throughout the entire lifecycle of their projects. With 75 MW of capacity already in operation, Principle Power is now guided by its “300x30” industrialization vision to deliver 300 floating wind turbines by 2030, propelling the industry into the gigawatt scale era. The company has secured exclusivity to supply WindFloat® technology to commercial-scale projects in all key floating wind markets totaling 10 GW of projects under design contract.

For more information, visit principlepower.com

About HSG Sungdong

HSG Sungdong is a proven as a professional company specialized in shipbuilding/offshore wind power/plant in the global market. It has been evaluated as a top tier in the maritime field for more than 20 years and has optimal infrastructure for manufacturing offshore wind substructures. In particular, it has the latest facility equipment such as 1,190,000m2 yard, 2km quayside, and large roll bending machine(110 Thickness Production capacity) specialized in offshore wind substructure fabrication, and a rich shipbuilding experience of about 270 ships. HSG Sungdong will also play a leading role in eco-friendly future industries in the trust of customers with emphasis of efforts for innovation, safety, and sustainability. Recently, HSG Sungdong is rapidly emerging as a powerful option in the offshore wind power market, responsible for solutions related to offshore substructure fabrication and integration of global companies.

For more information, visit http://www.isungdong.com/

3 December 2024