GS E&C announced Monday the signing of a memorandum of understanding (MOU) with I Squared Capital, a leading global infrastructure investment firm, to form a joint venture. This strategic partnership will focus on developing and investing in renewable energy projects across South Korea.
This significant agreement outlines the ambitious goal for both companies to secure 1.5 gigawatts (GW) of critical energy transition assets by 2035. Their primary focus will be on advancing solar power generation and pioneering battery energy storage system (BESS) projects.
Established in 2012, I Squared Capital boasts approximately $60 billion in managed assets and a robust track record of successful investments in renewable energy projects. Their global portfolio spans key markets in Asia, including India, Japan, and Taiwan, alongside various other international ventures.
The synergy of this partnership will leverage I Squared Capital’s profound expertise in infrastructure investing and sophisticated project financing. This will be seamlessly combined with GS E&C’s renowned engineering capabilities, extensive project development experience, and deep understanding of the dynamic Korean market.
GS E&C is set to spearhead critical aspects of project development, encompassing essential stages such as site acquisition, permitting, licensing, comprehensive project structuring, and technical advisory services. Concurrently, I Squared Capital will expertly oversee all investment structures and develop robust financing strategies tailored for each individual renewable energy project.
The strategic partners are committed to collaboratively identifying and developing promising opportunities within South Korea’s burgeoning solar energy and energy storage sectors. A rigorous evaluation process will be undertaken for each project, assessing its commercial, technical, and financial viability to ensure successful implementation.
This new joint venture signifies a pivotal strategic shift for GS E&C, moving beyond its conventional engineering, procurement, and construction (EPC) business model. Embracing a developer model allows GS E&C to engage from the initial stages of renewable energy projects, securing long-term development rights and valuable energy assets.
A GS E&C official commented on the initiative, stating, “As the global impetus for energy transition and carbon neutrality intensifies, we are strategically expanding our renewable energy portfolio, which prominently features advanced solar power and robust energy storage systems.” The official added, “We are dedicated to continuously exploring new opportunities, diligently securing renewable energy development rights, and establishing stable power off-takers both within Korea and in international markets.”
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