Renewable energy engineering and project management consultancy, K2 Management (K2M), has been appointed by MunmuBaram Co., Ltd, a joint venture of Shell and Hexicon AB, as the lender’s technical advisor for the MunmuBaram floating offshore wind project.
The MunmuBaram JV aims to develop, construct, and operate a 1.3GW floating offshore wind farm, located in Southeast Korea between 65 and 80 km offshore from the city of Ulsan.
In this first stage as the Lender’s Technical Advisor, K2M will support the client by reviewing the general project status and conducting a bankability assessment. In the second phase, K2M will provide full technical due diligence in every aspect of the project, including but not limited to: energy yield assessment; technology and design; and project execution strategies, while continuing to engage with lenders for various supporting activities until financial close.
An option for further engagement as a Lender’s Technical Advisor throughout the rest of project lifetime, including the monitoring of the construction and operation periods, is also part of the agreement.
Sungwon Jung, Country Director of South Korea at K2 Management, said “With the wind energy industry poised for growth in Korea, K2 Management’s extensive experience in the more mature European offshore market enables us to build on the many technical and construction lessons learned. We look forward to supporting the MunmuBaram project, working closely with lenders, and applying local knowledge to ensure we are well equipped to meet the unique needs of the South Korean market.”
South Korea Carbon Neutrality Goals
South Korea seeks to become carbon neutral by 2050 and is looking to expand its renewable energy market to achieve this target. As the country goes through a transitional period to establish its renewable energy sources, it has begun to attract some of the leading developers in the industry who see South Korea as a long-term focus. The country has vast potential for offshore wind with large coastal areas and a strong manufacturing base.
With its ambitious targets, offshore wind can expect to contribute significantly towards the country’s energy transition. At the same time, the commitment from government is substantial, presenting significant opportunities as the market matures for South Korea to become a key player in renewable energy.