Korea Overseas Infrastructure & Urban Development Corporation (KIND) said on the 23rd that it participated as an investor in a combined heat and power (CHP) plant project underway in Europe, supporting mid-sized domestic EPC (engineering, procurement and construction) corporations BHI in entering the European energy infrastructure market and winning overseas orders.
The project involves building and operating an eco-friendly, high-efficiency CHP plant that uses natural gas as fuel to produce electricity and heat simultaneously. The plant will have a capacity of 110 MW of electricity and 90 MW of heat. It is expected to replace an aging thermal power plant and contribute to a stable supply of electricity and district heating for up to 400,000 households.
KIND provided integrated support across the entire project life cycle—from project identification and development to investment—so that BHI could not only win an overseas construction contract worth more than $300 million (about 445.1 billion won) but also execute an equity investment.
KIND signed a "mutual cooperation MOU for a CHP project" with BHI in 2023 and, through feasibility study consulting support, provided local market analysis, market entry plans, and project structuring options for entry into the European energy market.
In particular, KIND participated in the project as the largest shareholder through an equity contribution, providing a level of credibility and stability sufficient to raise large-scale financing needed to move the project forward. Through consultations with a lenders' group that includes domestic commercial banks, the goal is to sign a loan agreement in the first quarter of next year and then break ground.
Leveraging this project, KIND plans to expand participation in ESG-based infrastructure development projects in Europe. It will continue to strengthen an investment-development project portfolio that allows domestic builders and manufacturers of power generation equipment to participate jointly.
KIM Bok-hwan, president of KIND, said, "Europe is the most advanced market in energy transition and eco-friendly infrastructure and, with institutional stability, a region where high value-added infrastructure investment is possible. This project is significant in that it created opportunities for the two countries to cooperate in the energy sector," adding, "With this project as a starting point, Team Korea led by KIND will actively participate in the European energy market and take the lead in expanding opportunities for overseas construction orders and infrastructure investment by Korean corporations."