Danish Offshore Wind Operator Esvagt Forms Joint Venture with South Korean Shipping Company
Danish offshore wind vessel operator Esvagt has officially formed a joint venture with South Korean shipping company KMC Line. The new venture, named KESTO, will target the growing South Korean offshore wind market, which has ambitious plans to establish as much as 18.3 GW of offshore wind by 2030.
The two companies have already begun discussions with partners on several Korean offshore wind farms set to be established from 2027 onwards. Esvagt’s chief executive, Søren Karas, expressed the company’s ambition to expand and respond to customer demands by leveraging their expertise in new markets.
“The potential of the Korean offshore wind market is very attractive, but as an emerging market, it also comes with unknowns. International developers and turbine manufacturers seek well-known partners and respected suppliers in new markets, which gives us an advantage,” Karas stated.
In February 2024, Esvagt and KMC Line signed a letter of intent to collaborate on renewable energy projects in Korea. KMC Line, founded in 1989, is a prominent player in South Korea’s coastal shipping industry, serving clients such as Posco, Hyundai Steel, and Hyundai Oilbank.
According to Jacob Lykke-Kjeldsen, senior sales executive at Esvagt, the partnership with KMC Line will combine Esvagt’s offshore wind experience with KMC Line’s market insight and local relationships, ensuring a competent delivery and quality product in the Korean market.
James Jonghoon Kim, president and CEO of KMC Line, expressed confidence in the joint venture’s ability to elevate safety and service quality in the offshore wind industry by leveraging Esvagt’s expertise in Service Operation Vessels (SOVs) and KMC Line’s regional maritime knowledge.
This strategic move will see Esvagt expand its presence to three continents, following a joint venture with US shipping conglomerate Crowley for the North American wind market. The companies are currently collaborating on building an SOV to support Siemens Gamesa’s service operations at Dominion Energy’s wind farm, slated to become operational in 2026.