Northland Power Expands Offshore Wind Pipeline in Asia With Acquisition of Development Company in South Korea
GlobeNewswire - Mon Feb 24, 9:19AM CST
Northland Power Inc. ("Northland") (TSX:NPI.TO) announces the signing of an agreement to acquire Dado Ocean Wind Farm Co., Ltd. ("Dado Ocean"), a development company with multiple early stage offshore wind development sites near Chodo Island, off the south coast of South Korea. Dado Ocean is currently owned by Mr. Eui Jeong Hwang, an experienced wind power developer who will continue to support the project as a local partner, working together with Northland to achieve key milestones for the project. The acquisition is expected to close in the coming weeks, subject to customary closing conditions.
The acquisition builds on Northland's presence in Asia and specifically in South Korea. It is anticipated that South Korea's installed capacity will more than double by 2050, with renewables accounting for approximately 59% compared to 8% in 2018. Offshore wind will make up almost half of this renewable generation.
Leveraging its expertise and experience in offshore wind development, Northland is positioned through this acquisition, to help South Korea achieve its renewable energy development targets. Northland's current portfolio in Asia includes a 60% equity stake in the 1,044 MW Hai Long offshore wind project under development in Taiwan and a joint venture to pursue offshore wind development opportunities in Chiba Prefecture, Japan.
The current projects, which are in early stage development, include multiple development sites located in Chodo-ri and Sonjuk-ri of Yeosu City, 35km off the southern coast of the Korean Peninsula, and together these projects will be developed over the coming years.
"This agreement builds on Northland's strategy to pursue opportunities in South Korea," said Mike Crawley, President and Chief Executive Officer of Northland. "We are excited to be part of Korea's energy transformation as it looks to the future with the government's Renewable Energy 3020 Program, that aims to achieve 12.0 GW of offshore wind capacity by 2030."
Further commenting Mr. Crawley said "Northland's history is one of working with local communities and respecting local rules and regulations, and we look forward to working with Mr. Hwang to deliver this for these projects. Northland is always committed to ensuring open and transparent communication, continually engaging in respectful dialogue with regular communication and striving to be a good partner and neighbour."