Vivian invests in Kwanglim's offshore wind project via MOU

Vivian announced on September 10 that it had signed a memorandum of understanding (MOU) with KWANGLIM on September 7 to cooperate in renewable energy business.

Under the agreement, Vivian will make strategic and financial investments in the eco-friendly energy development projects pursued by KWANGLIM and cooperate across all aspects of the business. The specific investment scale, method and timing will be determined after detailed due diligence, compliance with relevant laws and regulations, board approval and execution of a definitive agreement.

The core project is the Yeonggwang Future Offshore Wind Power Generation Project being pursued by KWANGLIM. This is a project to develop a 160-megawatt (MW) wind farm in the waters off Baeksu-eup, Yeonggwang County, South Jeolla Province, with a total of 11 wind turbines including ten 15MW units and one 10MW unit. The total project cost is approximately 1 trillion won.

Vivian CEO Son Young-seop (right) and Gwanglim CEO Hwang Tae-young pose for a commemorative photo after signing a business agreement at Vivian's headquarters in Jung-gu, Seoul on the 7th. · Photo: Asia Economy

Project economics have improved. In June, KWANGLIM received an EBL amendment that reduced the onshore transmission line from approximately 40 kilometers to approximately 500 meters. This is expected to achieve cost savings of up to 350 billion won. With a substation secured 500 meters from the project site, the location offers favorable conditions for grid connection. The company is currently proceeding with follow-up permitting procedures including environmental impact assessment (EIA).

According to analysis by Gunsan University's Offshore Wind Research Institute, when the power plant is completed it will be able to generate between 278,953 and 326,224 megawatt-hours of electricity annually, with projected annual revenue exceeding 100 billion won.

As a KOSPI-listed company, Vivian plans to support project financing by leveraging its access to capital markets. KWANGLIM will take on roles including obtaining generation permits and providing equipment and technology support.

The two companies have established a joint venture called Honam Renewable Energy Corporation in Yeonggwang to expand business scope beyond power plant construction to include development, operations and logistics. The company plans to provide development management, project management (PM), equipment procurement and operations and maintenance (O&M) services to developers.

The companies have already signed agreements with Korean Energy Comprehensive Technology, a domestic wind maintenance company, and Marine Shipping, a specialist in offshore infrastructure, building a value chain spanning development through maintenance and transportation.

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Son Young-seop, representative director of Vivian, said: "This agreement will be an important opportunity to establish renewable energy as a new growth axis for our company. By combining the core competencies of both companies, we will enhance business competitiveness and expand our scope across the entire value chain including maintenance, logistics and shipping to secure sustainable growth momentum."