Danish offshore services provider ESVAGT has entered into a joint venture with South Korean shipping company KMC Line to participate in South Korea's offshore wind market, according to the company's release.
The joint venture, named KESTO, was formalized during a signing ceremony in Seoul on May 8, attended by over 70 customers, partners, and officials.
South Korea plans to establish up to 18.3 GW of offshore wind capacity by 2030.
ESVAGT CEO Søren Karas stated, "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 have a heightened focus on using well-known partners and respected suppliers when much else is new. That is to our advantage."
Jacob Lykke-Kjeldsen, Senior Sales Executive at ESVAGT, commented, "KMC Line brings important market insight and strong relationships with local partners and authorities as well as the largest maritime universities in Korea. 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."
James Jonghoon Kim, President & CEO of KMC Line, noted, "The Korean offshore wind market is one of the fastest growing markets. We have a strong industrial base in South Korea but lack experience and the standard of service quality in the offshore wind industry. When we combine ESVAGT's expertise and experience in SOVs 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."
With this venture, ESVAGT extends its presence to three continents. The company previously entered the North American market in 2021 through a joint venture with Crowley, named CREST, to service offshore wind projects. The partners are constructing a Service Operation Vessel (SOV) to support Siemens Gamesa's operations at Dominion Energy's wind farm, expected to be operational in 2026.
Founded in 1981 and headquartered in Esbjerg, Denmark, ESVAGT specializes in safety and support services at sea, catering to both the offshore wind and oil & gas industries. The company pioneered the Service Operation Vessel (SOV) concept in 2010, providing accommodation, welfare facilities, offices, storage, and workshops for offshore technicians. ESVAGT operates a fleet of over 40 vessels and employs approximately 1,300 personnel offshore and onshore.
KMC Line is a South Korean shipping company with a fleet that includes heavy and project cargo carriers, ro-ro vessels, and bulkers.