Korea Midland Power Co. (KOMIPO) announced on July 2 that it is pushing into the European wind power market for the first time among domestic companies.
KOMIPO, Sprott Korea, STIC Alternative Asset Management signed an agreement on joint investment in a wind power project in Sweden under the supervision of Hana Financial Investment at the Hana Financial Investment head office in Yeouido, Seoul, on July 2.
KOMIPO participates in a 254.2 MW wind power plant construction and operation project in Sweden, becoming the first Korean company to enter the European wind power market. This project will be jointly operated by a South Korean consortium and a German consortium. As the only strategic investor, KOMIPO will be in charge of engineering, procurement, construction (EPC) and operation and maintenance (O&M). Therefore, it will be a good opportunity for the firm to show its technical ability and build up experience, according to KOMIPO.
Construction of the wind power plant to be established in the central region of Sweden will begin in July this year. It will be commercially operated for 25 years starting from October 2021. The project will be worth 360 billion won (US$308.35 million) and KOMIPO will invest about 20 billion won (US$17.13 million) in it. The state-fun firm is to set up a special purpose company tentatively called “KOMIPO Europe” to promote the project.
As the strategic investor, KOMIPO said it had pushed ahead with the project from last year after establishing a close working relationship with financial advisor, Hana Financial Investment, and financial investors, Sprott Korea and STIC Alternative Asset Management, and had also been in talks with German investors to succeed the project.