Power plant builder Doosan Heavy Industries & Construction Co. said Thursday it has signed a preliminary deal with the Korea National Oil Corp. (KNOC) to develop a floating offshore wind farm.

Under the deal, Doosan Heavy will provide floating wind turbines, while the state-run oil company will work on the overall procedures to build the floating offshore wind farm in the East Sea, the power plant builder said.

In July, the government said it plans to start building the floating offshore wind farm to generate about 6 gigawatts of electricity per year in the East Sea off the coast of Ulsan, 414 kilometers southeast of Seoul, starting in 2023.

The global floating offshore wind power is projected to grow at a maximum of 19 gigawatts annually, according to a report by the Global Wind Energy Council.

Doosan Heavy plans to generate 1 trillion won ($800 million) in annual sales in the offshore wind power business, the company said.

After the injection of 3 trillion won by its creditors, cash-squeezed Doosan Heavy has been pushing ahead with its plan to reorganize its business line focused on fossil fuel power plants to renewable energies. (Yonhap)