Danish offshore wind vessel operator Esvagt has officially formed a joint venture with South Korean shipping company KMC Line.
The jv named KESTO will target the growing South Korean offshore wind market, where current plans include as much as 18.3 GW offshore wind to be established by 2030.
The two companies said the new business is already in talks with partners on several Korean offshore wind farms to be established from 2027 onwards.
“It is our ambition to grow, and we are responding to a request from our customers to be able to draw on known skills and competences in new markets,” said Søren Karas, chief executive of Esvagt.
“The potential of the Korean offshore wind market is very attractive, but as an emerging market it also comes with unknowns. International developers and turbine manufacturers have a heightened focus on using well-known partners and respected suppliers when much else is new. That is to our advantage,” he added.
In February 2024, Esvagt and KMC Line signed a letter of intent to work together on renewable energy projects in Korea.
Founded in 1989, KMC Line lists 12 ships in its fleet, including bulkers, roros and heavy and project cargo carriers. The company is one of the nation’s leaders in coastal shipping, serving clients such as Posco, Hyundai Steel, and Hyundai Oilbank.
“KMC Line brings important market insight and strong relationships with local partners and authorities as well as the largest maritime universities in Korea. This will be important in combining Esvagt’s years of experience within offshore wind in a new market and in ensuring a competent delivery and quality product from the first day,” said Jacob Lykke-Kjeldsen, senior sales executive at Esvagt.
James Jonghoon Kim, president and CEO of KMC Line, added: “We have a strong industrial base in South Korea but lack experience and the standard of service quality in the offshore wind industry. When we combine ESVAGT’s expertise and experience in SOVs with KMC Line’s regional maritime knowledge, I am convinced that KESTO will raise the bar for both safety and service quality in the industry.”
The move will see Esvagt expand its presence to three continents, after setting up a joint venture with US shipping conglomerate Crowley for the North American wind market. The duo is currently building an SOV to support Siemens Gamesa’s service operations at Dominion Energy’s wind farm when it becomes operational in 2026.
