Hexicon Closer to Finalizing Floating Offshore Wind Deal in South Korea

November 28, 2024, by Adnan Memija

Sweden’s Hexicon has obtained the necessary regulatory clearance to acquire a controlling stake in the 1,125 MW MunmuBaram floating offshore wind farm in South Korea.

The South Korean Electricity Regulatory Commission (KOREC) has approved the transfer of two out of three Electricity Business Licenses (EBLs) for the MunmuBaram floating offshore wind project.

With this approval, the Swedish company has the necessary conditions to complete the Sales and Purchase Agreement (SPA) signed with Shell in February.

Hexicon’s acquisition to take over all the shares in the MunmuBaram project with the EBLs was subject to regulatory approval.

Therefore, the company submitted the required application to the South Korean Ministry of Trade, Industry, and Energy (MOTIE) in June for regulatory approval.

After a review process lasting nearly five months, KOREC has approved the transfer of two of the three EBLs to Hexicon, with the status of the third still pending. According to Hexicon, the company is exploring different options for this remaining transfer.

“Now, we can concentrate on advancing the MunmuBaram project towards auction and establishing a long-term ownership structure for the next, more capital-intensive phase,” said Marcus Thor, CEO of Hexicon.

The 1,125 MW MunmuBaram floating offshore wind project is planned to be built approximately 60 kilometres off the coast of Ulsan, in the southeast region of South Korea.

With an approved Environmental Impact Assessment (EIA) and a Transmission Service Agreement with Korea Electric Power Corporation (KEPCO), the project has met all requirements for the coming floating offshore wind auctions in South Korea, Hexicon added.