A wind turbine (Herald DB)
BlackRock Real Assets said Thursday it has closed its first investment in South Korea’s offshore wind sector, in line with the country’s renewable energy transition initiative.
The New York-based asset managing arm dedicated to real estate and infrastructure investment acquired a 100 percent equity stake in renewables developer Korea Renewable Energy Development & Operation Holdings, formerly known as Igis Private Equity. The transaction price was not disclosed.
BlackRock Real Assets said it plans to inject $1 billion of equity over time to build out Kredo Holdings’ pipeline of offshore wind and other renewables assets amounting to over 2 gigawatts in power generation capacity in waters off Imjado in Sinan County, South Jeolla Province and Yeonpyeongdo, Incheon.
“We believe that offshore wind will play a vital role in the nation’s road to decarbonization and that (Kredo Holdings) is ideally placed to partner with us,” Charlie Reid, managing director of BlackRock Renewable Power, said in a statement.
“This transaction demonstrates how South Korea’s commitment to a net zero future is creating compelling investment opportunities for BlackRock’s clients.”
The projects are expected to be fully contracted under 20-year agreements with subsidiaries of the state-owned Korea Electric Power Corp.
BlackRock Real Assets in April raised $4.8 billion, more than one-third of which is marked for investments in climate infrastructure assets in the Asia-Pacific region.
By Son Ji-hyoung (email@example.com