German energy giant RWE AG and Hyundai Engineering & Construction, a unit of Hyundai Motor, have entered into a Memorandum of Understanding (MoU) to collaborate on offshore wind projects in South Korea and potentially extend their partnership globally.
The alliance is a strategic move to expedite South Korea's energy transition, aligning with the country's Net Zero 2050 target and the ambitious plan to increase domestic renewable energy capacity to 108.3 GW by 2036, including a substantial 24 GW from offshore wind.
RWE, a prominent player in the offshore wind sector, currently operates 19 offshore wind farms across five countries, boasting a pro-rata installed capacity of approximately 3.3 GW. The collaboration aims to leverage RWE's expertise and Hyundai Engineering & Construction's capabilities to contribute significantly to South Korea's renewable energy goals. RWE's South Korean team, comprising nearly 2,000 offshore wind experts, is poised to play a pivotal role in the joint execution of offshore wind projects.
In a broader scope, beyond offshore wind, the partnership will explore the integration of Hyundai's hydrogen experience, particularly from its first Korean electrolysis plant, with RWE's proficiency for potential green hydrogen projects. The success of these endeavors will be contingent upon favorable market conditions, reflecting a forward-looking approach by both entities to contribute to the decarbonization of the energy landscape.
The MoU signifies a collaborative effort to combine international expertise, technological capabilities, and a shared commitment to sustainable energy solutions. As South Korea focuses on achieving its renewable energy targets, this partnership marks a crucial step toward accelerating the transition to a more sustainable and green energy future.