Hexicon AB has announced the signing of a definitive agreement to take full control of the MunmuBaram project, an offshore wind project located in the waters adjacent to the city of Ulsan in southeastern South Korea. This strategic move was made by means of a Sale and Purchase Agreement (SPA) withShell Overseas Investments BV.
Hexicon’s expansion in offshore wind project
Hexicon AB will increase its holding in MunmuBaram Co. MunmuBaram Co. Ltd. from an initial 20% to a full 100%, significantly expanding the scope of projects under the MunmuBaram brand by 900 megawatts. The firm indicates that the completion of this transaction is pending approval by the regulatory authorities.
The MunmuBaram project development, initially undertaken by Hexicon Korea in 2018, aims to create a floating offshore wind farm with a capacity of 1.125 gigawatts, located off the coast of Ulsan.
Key acquisition in MunmuBaram project
Hexicon’s full acquisition of MunmuBaram was made possible thanks to the financial backing of Glennmont Partnersone of Europe’s leading infrastructure funds focused on clean energy. This support is part of Glennmont ‘s existing credit facilities in favor of Hexicon, and the agreement provides for an upfront payment of US$5 million for the transaction.
The SPA agreement contemplates a profit-sharing scheme that could amount to up to US$50 million over three years. This aspect of the agreement links the size of the profit sharing, including the factor of possible sales of MunmuBaram shares and the resulting net income.
Hexicon has initiated procedures to establish a definitive ownership structure for MunmuBaram and is making progress in obtaining the necessary government approvals to continue with the existing licenses. This step is crucial to ensure the long-term success of the project.
Leveraging resources and maximizing energy effort
Hexicon is committed to reallocating resources to maximize the value of the MunmuBaram project, working closely with Shell to facilitate a smooth transition. Once completed, this project will represent about 15% of the total portfolio for the company, measured in megawatts.
“South Korea remains a strategic market for the development of floating offshore wind energy, and this acquisition reinforces our position as a global leader in this segment.” stated Marcus Thor, CEO of Hexicon AB, highlighting the company’s continued commitment to expanding clean energy internationally.
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Source: rigzone.com
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