OSLO, Dec 19 - 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, known as the Bandibuli project, located 70 km off the southeast coast of South Korea.
An Equinor spokesperson confirmed that the company will collaborate with South Korean authorities to finalize the details before potentially signing a contract. The Bandibuli project is notable as one of the largest floating offshore wind initiatives globally, although floating offshore wind technology remains in its early stages and requires government backing.
The South Korean Ministry of Trade, Industry and Energy (MOTIE) announced that the 2024 bidding round has allocated 1,886 MW of fixed-price contracts for offshore wind, marking the first award for a floating wind project. The ceiling price for the tender was set at 176,565 won ($121.96) per megawatt hour (MWh), but the offer for floating wind projects is approximately 500,000 won, or around $350/MWh, according to sources familiar with the bidding conditions.
Equinor is currently seeking a partner for the Bandibuli project, with a final investment decision expected in one to two years, contingent upon achieving a competitive return.