Danish offshore vessel operator Esvagt and South Korea’s KMC Line have formed a joint venture to support the country’s growing offshore wind sector, with ambitions to tap into a planned 18.3 gigawatts (GW) of capacity by 2030.
The new venture, named KESTO, was formally launched at a ceremony in Seoul last week attended by more than 70 stakeholders, including customers, partners and government officials. The partnership aims to combine Esvagt’s offshore wind service expertise with KMC Line’s local maritime knowledge to meet rising demand for service operation vessels (SOVs) in the emerging South Korean offshore wind market.
“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.”
Esvagt, which has established a presence in Europe and the Americas, said its entry into Asia through KESTO marks its expansion to a third continent. The joint venture is already in discussions with developers involved in several South Korean offshore wind farms scheduled to begin construction from 2027 onwards.
James Jonghoon Kim, president and chief executive of KMC Line, said the partnership addresses a key capability gap in the region. “We have a strong industrial base in South Korea but lack experience and the standard of service quality in the offshore wind industry,” he said. “When we combine Esvagt’s expertise and experience in service operation vessels 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.”
According to Esvagt’s senior sales executive Jacob Lykke-Kjeldsen, the collaboration with KMC Line offers a strong foundation for market entry. “KMC Line brings important market insight and strong relationships with local partners and authorities as well as the largest maritime universities in Korea,” he said. “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.”
South Korea’s government has set a target to install 18.3GW of offshore wind capacity by 2030, making it one of Asia’s most active emerging markets for the sector.
