Hexicon has secured regulatory approval needed for its acquisition of a controlling stake in a 1125MW floating offshore wind project in South Korea.
The South Korean Electricity Regulatory Commission (KOREC) has approved the transfer of two out of three Electricity Business Licences (EBLs) for the floating offshore wind project MunmuBaram.
With this approval, Hexicon has the necessary conditions to complete the Sales and Purchase Agreement (SPA) for MunmuBaram signed in February.
Hexicon’s acquisition to take over all the shares in the MunmuBaram project with the EBLs was subject to regulatory approval.
Therefore, Hexicon submitted, in June, the required application to the South Korean Ministry of Trade, Industry, and Energy (MOTIE) for such regulatory approval.
Following nearly five months of review process, KOREC has now approved the transfer of two out of the three EBL’s to Hexicon.
The two approved EBLs provide for a viable progression of the project.
The third EBL is undetermined at this stage, and Hexicon is currently considering various options.
“The approval from KOREC is a major milestone for Hexicon, and we are both happy and relieved to receive it,” said Hexicon chief executive Marcus Thor.
“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.”
The MunmuBaram project is in the late development stage.
With an approved Environmental Impact Assessment and a Transmission Service Agreement with KEPCO (Korea Electric Power Corporation), the project has met all requirements for the coming floating offshore wind auctions in South Korea.
