LS Cable & System won a deal worth 89 million euros ($100 million) with Denmark’s state-run energy firm, Orsted, to build a submarine power grid in Taiwan, the firm said Friday.

The Korean industrial company said it had agreed with Orsted to supply submarine power cables to offshore wind farms in Changhua, a city in central Taiwan, and put them in place by 2022. 

The Taiwanese government plans to invest around $23 billion to increase the amount of renewable energy generated in the nation from the current 5 percent of all energy generated there to 20 percent by 2025. Around 10 offshore wind farms with a combined total capacity of 5.5 gigawatts per year are being built in the nation. The Changhua wind farm is expected to produce 900 megawatts per year.

CEO Myung Roe-hyun said, “LS Cable & System has now secured global competitiveness since it first jumped into the submarine power grid business in 2009. We expect continued growth in the industry as offshore wind farms have been growing in Europe and Asia.”

Orsted is a Danish energy firm that was established in 1972, with the Danish government holding a 51 percent stake. 

By Shin Ji-hye (shinjh@heraldcorp.com)