OMNI Features｜SK oceanplant Anticipates Commencement of Deliveries for Taiwan Hai Long and Fengmiao Offshore Projects．Preparations Underway for 2,500-Mile Subsea Power Line Project Linking the UK to Morocco

(Source: SK oceanplant)

｜SK oceanplant Anticipates Commencement of Deliveries for Taiwan Hai Long and Fengmiao Offshore Projects
Due to stable sales in its ship and specialized special vessel sectors, SK oceanplant has advanced the increase of offshore wind power-related orders. Starting in the 2nd half of the year, SK oceanplant will begin delivering orders for Taiwan offshore wind projects, with expected growth in performance. According to SK oceanplant, consolidated sales for the second quarter of 2024 are estimated at 218.4 billion KRW, with an operating profit of 13.7 billion KRW, reflecting decreases of 15.3% and 54.4%, respectively, compared to the same period last year.

The decline in performance is attributed to a sluggish order volume in the first quarter (121.8 billion KRW) and delays in the delivery of the 2022 Taiwan Hai Long Offshore Wind Project. Kim Kwang-sik, a researcher at Sangsang Certification, stated in his report "SK oceanplant 2024 Preview: Awaiting the Second Half," (SK 오션플랜트, 2024 Preview: 하반기를 기다리며) that although sales in the shipbuilding and specialized vessel sector surged by 50.3% to 86.6 billion KRW, the offshore wind power division saw a decline of 28.8% to 97.4 billion KRW. Kim further noted that Taiwan recently announced the results of its Phase 3-2 commercial selection, marking it as a key market for wind power. With the commencement of deliveries for the Taiwan Hai Long and Fengmiao offshore projects in the second half of the year, SK oceanplant's performance is expected to rebound.

SK oceanplant, possessing the largest offshore wind infrastructure production capacity in Asia, anticipates consolidated sales for the third quarter to reach 250.8 billion KRW, with an operating profit of 17.1 billion KRW, reflecting increases of 14.8% and 24.8%, respectively, over the previous quarter.

｜Preparations Underway for 2,500-Mile Subsea Power Line Project Linking the UK to Morocco
The United Kingdom is planning to construct a nearly 2,500-mile intercontinental high-speed subsea power line, the "Morocco-UK Power Project," which will connect Morocco's extensive wind and solar power farms to the UK.

Western Morocco boasts significant green energy potential, with at least 10 hours of sunlight even on the shortest days and frequent strong winds in the afternoon. Simon Morrish, the project's designer and leader of the company Xlinks, plans to build sufficient photovoltaic fields, wind turbines, and storage batteries in Morocco to meet 8% of the UK's electricity demand, enough to power approximately 7 million households.

Morrish has secured early investments and assembled an experienced team, but still needs to obtain subsidies from the UK government, raise tens of billions of dollars in financing, and secure permits for seabed usage.

The landscape of power supply is changing. Traditional coal-fired power plants are typically located near consumption areas, eliminating the need for long-distance power transmission; however, areas rich in wind and solar power are often remote from major cities. Currently, Northern Europe's grid shares wind power through subsea cables; the world's longest land and subsea power cable, the Viking Link, connects the UK to Denmark, spanning 475 miles and was commissioned last December

Reference: FerroTimes｜WSJ