South Korea, Japan Work Together For Wind Power Development

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--South Korea is currently in the middle of a renewable energy revolution and is looking to become a global player in the near future. Last year, the government announced a $36 billion, 5-year plan that will feed directly into sustainable energy development, support and promotion. The country is already well known for its nuclear program, having won the bid to build not only United Arab Emirates' first nuclear power stations, but also the tender to supply Jordon with its first research reactor.

In the wind power arena, South Korea is moving fast. Wind power currently accounts for about 1% of the world's total energy production, and is expected to reach 400 gigawatts (GW) by 2014. Asia is expected to account for 10% by 2020. Major players like Hyundai Heavy Industries Company Limited (SEO: 009540) (HHI) (Ulsan, South Korea) and Unison Company Limited (SEO:01800) (Sahcheon, South Korea) are leading South Korea in wind power equipment technologies.

Within two years of establishing its wind power sector, HHI was able to produce more than 600 megawatts (MW) worth of wind turbines every year. Unison is South Korea's oldest wind power equipment manager and focuses heavily on direct-drive generators, producing 1,000 MW worth per year. A direct drive generator, which is a type of permanent magnet synchronous generator, uses no gears and is highly efficient. Currently, IIR is tracking 30 active wind power projects, worth approximately $2.3 billion, in South Korea.

Unison signed a memorandum of understanding with Toshiba Corporation (TYO:6502) (Tokyo) on Monday, May 23, for the marketing and co-development of wind power equipment technologies, specifically new turbines. Toshiba, mainly known for its contributions to nuclear energy, will be applying knowledge garnered from steam turbine technologies to wind power in tandem with Unison. The $36 million agreement will also allow Toshiba to distribute Unison generators through its worldwide subsidiaries.

This is not Toshiba's first foray into wind power. In 2002, Gamesa Corporation (MCE:GAM) (Vitoria-Gasteiz, Spain) signed an agreement to provide Toshiba with marketing rights as well as the rights to use Gamesa turbines in windfarm development. Toshiba installed several of these turbines at an offshore windfarm just off the coast of Ibaraki prefecture at Kamisu. The windfarm survived the March 11 Great East Japan Earthquake Disaster. Toshiba has also designed its own wind turbine as well. In 2003, the Tokyo-based company released the Wind Flower, a vertical, three-bladed turbine that was not widely used. Toshiba has stated that its decision to work with Unison is due to wind power's potential.

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