Singapore-based offshore player Kim Heng has signed a four-year offshore geotechnical survey works engineering, procurement and construction framework agreement with South Korean offshore wind farm developer Soiltech Engineering.
The four-year agreement, which includes an option for a further two years, calls for Kim Heng to provide a drilling vessel to carry out various geotechnical survey projects for Soiltech’s offshore wind farm projects in Korea.
The agreement gives Soiltech right of first refusal to secure the use of a geotechnical survey vessel provided by Kim Heng’s wholly owned subsidiary Adira Renewables.
Kim Heng chairman and chief executive Thomas Tan told TradeWinds that the deal was a “game changer” for Kim Heng, which has made significant inroads into the Asian offshore wind sector through contracts in Taiwan and Vietnam.
“It is an opportunity for Kim Heng to expand its renewables footprint in the offshore wind farm projects in Korea,” he said.
South Korea plans to develop 12 GW of offshore wind projects by 2030 under its Renewable Energy 3020 Implementation Plan.
A project to develop an 8.2 GW wind complex off South Jeolla Province was announced in 2021 with completion scheduled by 2030, when it will become the world’s largest single offshore development.
The country is also investing KRW 1.4trn ($1bn) in the first phase of a project developing a 6 GW floating wind farm off Ulsan.
A power grid to deliver electricity generated by the offshore wind farms is being developed in parallel. DNV is acting as a technical adviser to Korea Electric Power Corp on this project.
Tan added that Kim Heng will also benefit by executing geotechnical survey works in the pre-construction phase of larger, more complex offshore wind farm projects tapping on Soiltech’s know-how in soil investigation works.
“We are excited about our strategic collaboration with Soiltech to enable us to provide geotechnical investigation services to one of the largest renewables offshore wind farm developers globally. This partnership empowers us in making a significant step forward in Kim Heng’s diversification into renewable energy,” he said.
Kim Heng is in the process of converting one of its multipurpose supply vessels equipped with a moonpool into a geotechnical survey vessel named Bridgewater Discovery. It will be based in South Korean waters after its conversion is completed.
Kim Heng said in a stock exchange announcement that barring any unforeseen circumstances, the Soiltech contract is expected to contribute positively to its earnings per share and net tangible assets.
