South Korea to Invest $8.2 Billion in Offshore Wind Power to Meet Demand

South Korea, Asia’s fourth-biggest crude oil importer, plans to invest 9.2 trillion won ($8.2 billion) in offshore wind power farms by 2019 to meet growing demand for clean energy.

The government and private companies will install 500 wind turbines off the country’s west coast with a total capacity of 2,500 megawatts, the Ministry of Knowledge Economy said in an e- mailed statement today.

The nation joins China, Denmark, the U.S. and other countries in developing offshore wind farms. Global offshore wind power capacity totals 2.9 gigawatts, with 2.6 gigawatts under construction and about 154 gigawatts planned or proposed, according to the ministry.

The wind farms will give South Korean companies that want to export equipment and facilities a chance to build up experience and access to technology, the ministry said.

The ministry plans to install a 100-megawatt test farm by 2013. A 900-megawatt park is planned by 2016 and the ministry wants to add 1,500 megawatts of further capacity by 2019.

Dongkuk Structure & Construction Co. and other wind power- related companies gained in Seoul trading. Dongkuk Structure & Construction, which makes forged products for wind power, was up 2.1 percent at 9,680 won at 11:09 a.m.

Hyunjin Materials Co., which makes wind-turbine parts, rose 3.6 percent to 20,200 won, while Yonghyun BM Co. gained 2.2 percent to 14,150 won.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net.

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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