Swedish clean technology company Hexicon has agreed to take full ownership of the 1.1GW MunmuBaram floating offshore wind farm from Shell Overseas Investments.

The acquisition will raise Hexicon’s stake from 20% to 100%. It will also increase its project portfolio by 900MW.

The MunmuBaram project, which Hexicon Korea initiated in 2018, will be located offshore the city of Ulsan.

The acquisition is supported by Glennmont Partners, a European clean energy infrastructure fund.

In May 2023, Glennmont agreed to provide Hexicon with $48.5m (€45m) to bolster its project pipeline.

The transaction includes an initial payment of $5m, with a further profit-sharing arrangement that could reach $50m over three years, contingent on the sale of Hexicon’s shares in MunmuBaram and other factors.

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The company is establishing a long-term ownership structure for the project and seeking government approvals to maintain existing licences.

It is reallocating resources to enhance the project’s value and working closely with Shell for a seamless transition.

Hexicon CEO Marcus Thor stated: “South Korea continues to be a leading market with good conditions for the development of floating offshore wind.

“Through this transaction, South Korea remains a core market for Hexicon and strengthens our position as a leading global developer of floating offshore wind.”

To be located 65–80km from the coast, MunmuBaram is expected to play a pivotal role in South Korea’s Renewable Energy 2030 Plan.

The country is targeting a 20% renewable energy share by 2030 and has set a carbon neutrality target of 2050.

Danish wind energy giant Ørsted has signed a memorandum of understanding (MOU) with Incheon metropolitan city, part of the Seoul Capital Area.

The MOU aims to foster offshore wind power industry growth, anchored by the company’s 1.6GW offshore wind project.

Incheon will offer administrative support and develop policies and infrastructure, while Ørsted will apply its expertise to benefit local stakeholders.