GS Engineering & Construction will team up with a global investment firm to launch a domestic renewable energy development business. Centered on solar power and battery energy storage systems (BESS), the company plans to secure a total of 1.5 GW of energy transition asset by 2035.
GS Engineering & Construction said on the 22nd it signed a memorandum of understanding (MOU) with global infrastructure investment firm I Squared Capital to establish a joint venture (JV) to push domestic solar and BESS projects.
The two companies plan to develop and secure a total of 1.5 GW of energy transition asset by 2035 through the joint venture. GS Engineering & Construction will handle development tasks such as securing sites, permits, and establishing the business structure, while I Squared Capital will design the investment structure and draw up the financing plan.
The total project cost is estimated at about 3 trillion won. GS Engineering & Construction is reviewing a plan to invest part of the funds directly and raise the remainder through external financing such as project financing (PF).
A GS Engineering & Construction official said the company will expand renewable energy businesses such as solar and energy storage systems to respond to the global energy transition and carbon neutrality trend.