BlackRock Real Assets has acquired South Korean renewable energy company Korea Renewable Energy Development and Operation Holdings (KREDO Holdings), formerly known as IGIS Private Equity.

The deal is said to be the first in the country for BlackRock Real Assets, an affiliate of US-based asset management firm BlackRock.

BlackRock Real Assets made the investment through its latest Global Renewable Power fund series, which raised $4.8bn earlier this year.

The company said that the majority of the money has been invested in Asia Pacific’s climate-related infrastructure.

BlackRock Renewable Power managing director Charlie Reid said: “We are delighted to make a material commitment to the energy transition in South Korea.

“We believe that offshore wind will play a vital role in the nation’s road to decarbonisation and that KREDO Holdings is ideally placed to partner with us.”

BlackRock Real Assets intends to invest more than $1bn in KREDO Holdings to expand the Korean company’s assets.

This investment would also help South Korea to offset seven million tonnes of carbon emissions while helping the country meet its goal of reaching net-zero emissions by 2050.

KREDO Holdings CEO Doh Jeong-hoon said: “We believe that BlackRock Real Asset’s investment, combined with KREDO Holdings’ capability, will contribute meaningfully to this effort.”

In May, the South Korean government announced plans to build a 6GW floating offshore wind farm off the coast of Ulsan by 2030.

President Moon Jae-in said that the project would require a KRW36tn ($32.8bn) investment and would create 210,000 regional jobs.

The wind facility was planned for the site of the Donghae I gas field, which is due to cease production next year.

Some of the power generated by Donghae I will be used to power a 100MW electrolyser plant being developed as a separate project.