November 26, 2024

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Hanwha Ocean's Geoje shipyard in South Gyeongsang Province (Hanwha Ocean)

South Korean shipbuilder Hanwha Ocean said Monday that it will expand investment in its wind power business from the initial target of 200 billion ($151 million) to 300 billion won to secure an edge in the burgeoning industry.

The company said it plans to issue new shares to raise capital for the planned investment.

Currently, the global market for offshore wind power generation is growing at an annual rate of 18 percent. The field is expected to become one of the major renewable energy sources by 2040, according to the European Union.

With the raised fund, it aims to advance its technology in areas including wind turbine installation vessels and offshore ammonia and hydrogen production facilities to enhance its value chain in the field of renewable energy.

According to Hanwha’s planned business model, offshore wind turbines will be first installed through its vessels to generate electricity, which will then be channeled to the nearby ammonia and hydrogen production facilities to be used to generate ammonia and hydrogen via the electrolysis of desalinated seawater.

The ammonia and hydrogen produced will be then stored and transported to land through its specialized carrier vessels.

The company added that the entire process uses no fossil fuels and emits zero carbon.

“By combining our expertise in the desalination of water, electrolysis and hydrogen storage developed by our affiliates, we plan to establish an entire value chain that encompasses the production, storage and transportation of ammonia and hydrogen,” a Hanwha Ocean official said.

By Song Jung-hyun  (junghyun792@gmail.com)