Hyundai Steel and Hyundai E&C Partner for Floating Offshore Wind Power: Securing a New Growth Engine and Accelerating Energy Transition

Hyundai Steel and Hyundai E&C are jointly entering the floating offshore wind power generation business, signaling a shift in the domestic energy market landscape. This collaboration goes beyond a simple business agreement, demonstrating a commitment to unlocking new possibilities in the offshore wind industry by combining the technological prowess and experience of both companies. This is expected to contribute to South Korea's carbon neutrality goals and have a positive impact on the overall related industrial ecosystem. To establish a clear investment direction amid complex market conditions, we recommend comprehensively leveraging FireMarkets' in-depth analysis content and fundamental on-chain data.

Hyundai Steel and Hyundai E&C's Entry into the Floating Offshore Wind Power Business: Background

Accelerating Energy Transition and the Importance of Offshore Wind Power

The global energy market is undergoing rapid changes due to the need for energy transition to achieve carbon neutrality goals. In particular, offshore wind power plays a key role in the energy policies of major countries, offering higher power generation efficiency and wider space utilization compared to onshore wind power. South Korea also plans to expand the proportion of offshore wind power generation to achieve its 2030 Nationally Determined Contribution (NDC) target, and floating offshore wind power is attracting attention as an alternative that can overcome the limitations of existing fixed-bottom offshore wind power.

Synergy Effects of Hyundai Steel and Hyundai E&C

Hyundai Steel can contribute to building a supply chain for offshore wind power generation facilities based on its technology in manufacturing offshore wind turbine towers. Hyundai E&C can provide the technical expertise needed for the installation and operation of floating offshore wind power facilities through its experience in offshore construction and plant construction. The collaboration between the two companies can create synergy effects across the entire offshore wind power generation business and is expected to contribute to strengthening the competitiveness of the domestic offshore wind industry.

Outlook and Investment Strategy for the Floating Offshore Wind Power Market

Global Growth of the Floating Offshore Wind Power Market

Although the floating offshore wind power market is still in its early stages, it is expected to grow rapidly with technological advancements and cost reductions. In particular, it has the advantage of opening up the possibility of developing deep-sea areas, overcoming the constraints of existing offshore wind power generation projects. According to global market research firms, the floating offshore wind power market is forecast to record an annual growth rate of over 30% by 2030.

Promising Investment Areas and Risk Factors

Promising investment areas related to floating offshore wind power include the manufacturing of power generation facilities such as offshore wind turbine towers, cables, and substations, offshore construction and installation, operation and maintenance, and related technology development. However, floating offshore wind power projects have the risk of high initial investment costs and high technical difficulty. In addition, strengthening environmental regulations and conflicts with local residents can also pose difficulties in project implementation.