Sven Utermohlen, CEO of RWE's Offshore Wind division, holds an interview with The Korea Times at RWE Korea's office in Seoul, Nov. 12. Courtesy of RWE

Developing an offshore wind power industry in Korea will boost renewable energy use, help meet global carbon neutrality goals, and provide economic benefits such as job creation, increased foreign investments, and enhanced export competitiveness, according to a senior executive of RWE, a multinational renewable energy firm based in Germany.

Sven Utermohlen, CEO of RWE's Offshore Wind GmbH, highlighted Korea's favorable conditions for offshore wind power, citing its geographic advantages and advanced manufacturing industry. However, he emphasized that a political vision backed by clear and consistent regulatory frameworks that enables renewable energy deployment is crucial to drive market growth.

The German energy expert is supportive of the Korean National Assembly's plan to pass a proposed special bill on offshore wind power — discarded in the last session due to time constraints — and believes that expanding his company's investments in Korean waters will boost provincial economies and strengthen the country's green energy capabilities.

Utermohlen assured that one of offshore wind power's key benefits for Korea, as it moves toward carbon neutrality by 2050, is alleviating significant pressure by providing vast, low-cost clean electricity. He emphasized on the added benefits of clean power and its potential to play a significant role in decarbonization of Korea's industrial base ensuring continued growth in key industries — such as semiconductors, automotive, electronics, data centers, steelmaking, shipbuilding, and heavy industries.

"Consumers, governments and corporations are increasing their demands for goods and services to be produced from renewable energy sources," Utermohlen said in an interview with The Korea Times at RWE Korea's office in Seoul, Nov. 12.

"Key export markets for Korea, such as the EU, are putting a fair price on the carbon emitted during the production of carbon intensive goods. The EU does this via the carbon border adjustment mechanism (CBAM)."

While Korea's 10th Basic Energy Plan for Electricity Supply and Demand targets 14.3 gigawatts (GW) of offshore wind capacity by 2030 and 26.7 GW by 2036, Utermohlen said the energy industry will generate jobs in proportion to the scale of Korea's advanced industrial economy and attract increased direct foreign investments.

"In the United Kingdom, a country with a relatively small industry compared to Korea, offshore wind has generated over 30,000 jobs. With the wide range of Korean companies already part of the global offshore wind supply chain and many more likely to adapt from other sectors, I believe the potential for job growth in Korea could be far greater," Utermohlen said.

"Countries that provide access to renewable energy are gaining a competitive advantage in attracting foreign direct investment. Of the top 10 largest electricity-consuming companies that joined RE100 (claiming to source 100 percent renewable electricity) since 2022, seven are headquartered in Korea."

Sven Utermohlen poses at RWE's Kaskasi offshore wind farm in North Sea in August 2022. With 38 turbines, the farm has an installed capacity of 342 megawatts. Courtesy of RWE

Generating cheap electricity

RWE's efforts come at a time of economic downturn across Europe. Since 2020, the cost of steel has more than doubled and freight costs have surged, according to Utermohlen's social media post last year. He noted that after a long period of declining costs, essential equipment is now becoming more expensive, forcing European manufacturers to incur losses and downsize.

Despite these challenges, offshore wind has proven to be the most feasible option for power supply across the region, according to Utermohlen.

"Between 2011 and 2021, the wind industry reduced the average global cost of electricity from wind turbines by more than 70 percent, making wind energy one of the world's cheapest energy sources and the right answer for the energy transition," Utermohlen said.

Nordseecluster, an offshore wind power project in the German North Sea, is the latest example of RWE's carbon-free ventures. The cluster, consisting of two wind farms with a total capacity of 1.6 gigawatts, will feature 44 turbines in its first phase, which will be connected to the national grid by the beginning of 2027. The second phase will add 60 more turbines, with commercial operations set to begin by early 2029. Together, the farms are expected to generate around 6.5 terawatt-hours of green electricity annually.

With Nordseecluster, RWE will operate a total of eight wind farms off the German coast, bringing the company closer to its goal of tripling its global offshore wind capacity from 3.3 GW net to 10 GW net by 2030 globally.

But behind these figures, what's equally important is the long-term operation of these wind farms.

"Sustainability is key," Utermohlen said. "We need to explore and identify opportunities to create a lasting positive impact that benefits regions well into the future not only by providing clean energy but also by having a direct economic impact."

That is what RWE says it has been doing for the past 20 years with offshore wind across five continents. The second-largest global player in the offshore wind industry has so far installed 19 wind farms worldwide. In addition, the company invests millions of euros each year in ports, educational programs, and local organizations to support regional economies.

RWE's offshore wind farms currently in operation worldwide, 19 in total, are in waters off the coasts of the United Kingdom, Belgium, Germany, Denmark and Sweden. Their overall capacity amounts to 3.3 GW. Courtesy of RWE

Utermohlen acknowledges that offshore wind comes with intrinsic risks, including high financing costs and a levelized cost of electricity that is sensitive to both rising interest rates and increasing supplier component prices. Offshore wind projects are also highly affected by fluctuations in raw material costs, as turbines are made from steel for foundations (weighing over 1,500 tons), and glass fiber and wood for blades. These risks have contributed to several postponements or cancellations of turbine construction in recent years.

He aims to address these challenges by establishing more resilient supply chains, securing access to strategic raw materials, and ultimately offering developers viable business options with acceptable risk profiles throughout the lifespan of wind farms.

"By tackling these challenges, we can steer the offshore industry to calmer waters and make ambitious global expansion goals achievable again," Utermohlen said.

Who is Sven Utermohlen?

Prior to becoming the CEO of RWE Offshore Wind in 2021, Utermohlen was chief operating officer (COO) of RWE Offshore Wind and a member of the board at RWE Renewables from 2019. Before joining RWE in 2019, he worked for E.ON Climate & Renewables Central Europe, starting as regional director of renewables in 2006 and launching his career in offshore wind in 2011. In 2017, he became COO and a member of the board at E.ON.

Before entering the energy industry, he served as a manager and principal at the Boston Consulting Group from 2000 to 2006 and worked as an exploration geophysicist for Shell between 1993 and 1999.

He earned a bachelor's degree in geophysics from the University of Karlsruhe in 1990 and a Master of Science in geophysics from the University of Hamburg in 1993.