Shell and Hexicon Appoint K2 Management as Lender’s Technical Advisor for South Korean Floating Wind Farm

April 12, 2023, by Adrijana Buljan

Shell and Hexicon, through their joint venture in South Korea, have appointed K2 Management (K2M) as Lender’s Technical Advisor for the MunmuBaram project, a 1.3 GW floating wind farm planned to be built between 65 and 80 kilometres offshore the city of Ulsan.

Illustration; Image: MunmuBaram Co., Ltd

The Denmark-headquartered K2 Management will first review the general project status and conduct a bankability assessment, and then provide full technical due diligence in every aspect of the project. This will include (but is not limited to) energy yield assessment, technology and design, and project execution strategies. K2M will also engage with lenders for various supporting activities until the financial close.

The agreement with MunmuBaram Co., Ltd also comprises an option for further engagement as a Lender’s Technical Advisor throughout the rest of the project lifetime, including the monitoring of the construction and operation periods, K2M says.

The 1.3 GW floating offshore wind farm is planned to consist of 84 Vestas V236-15.0 MW turbines, installed on floating foundations at the project site that covers approximately 240 square kilometres and has water depths ranging between 120 and 150 metres.

In March last year, the MunmuBaram joint venture received two Electricity Business Licenses (EBLs) from South Korea’s Ministry of Trade, Industry, and Energy for their project, thus securing all the EBLs required to fully develop the 1.3 GW floating offshore wind farm.

Subject to the final investment decision, the MunmuBaram floating wind farm will be developed in phases and, once constructed, is expected to generate up to 4.2 TWh of clean electricity per year.