Export-Import Bank Supports Hanwha Energy's Ireland ESS Project with 56.2 Million Euros

Hanwha Energy Leads Stake Investment, EPC, and O&M Across Business
President Bang Moon-kyu: "We Will Expand Support to Discover Green Energy New Businesses and Secure Overseas Markets"
CEO Jung In-seop: "We Will Continue to Expand Investments in Renewable Energy with KEXIM Cooperation"
Support Provided Using Drone Footage and Online Conferences Due to COVID-19 Travel Restrictions

Visiting Kyu Soo-eun, President of K-Sure (left), and Jeong In-seop, CEO of Hanwha Energy, met on the 13th at K-Sure's Yeouido headquarters to sign a financial agreement supporting PF financing of 56.2 million euros for the Island Energy Storage System (ESS) project promoted by Hanwha Energy, followed by a commemorative photo.

[Asia Economy Reporter Kangwook Cho] The Export-Import Bank of Korea announced on the 13th that it will provide project finance (PF) funding of 56.2 million euros to support Hanwha Energy's Ireland Energy Storage System (ESS) project.

ESS (Energy Storage System) is an energy storage system that stores electrical energy and releases it when needed. It can be used throughout the power industry for storing and supplying idle power and stabilizing the power grid. PF (Project Finance) is a financing method where funds necessary for project construction are lent to a special purpose company (SPC), and the loan is repaid from operating revenues after the facility is completed. It is used in large overseas plant construction projects.

Bank President Moon Moon-kyu and Hanwha Energy CEO Jung In-seop met at the bank’s Yeouido headquarters on the same day to sign the financial agreement.

The Ireland Energy Storage System project involves installing and operating a 200MW scale energy storage system at two sites in central Ireland. Ireland’s share of renewable energy centered on wind power has rapidly increased from 16% in 2010 to 38% this year. Due to this, the volatility of power supply caused by climate changes such as wind strength has increased, creating a high need to solve the problem of frequency balance instability in the power grid.

This project is a green energy new business providing frequency regulation services. It uses ESS to reduce power when supply is excessive and quickly supply power when supply is insufficient, thereby stabilizing the power grid.

With a total project cost of 105 million euros, Hanwha Energy is leading the project overall through equity investment (80%), EPC (engineering, procurement, and construction), and O&M (Operations & Maintenance). This is an investment and development type project where Korean companies supply key equipment such as batteries.

At the signing ceremony, President Moon said, "We have continuously cooperated with Hanwha Energy from the early stages of the project to structure financing in order to actively support our companies’ overseas new business ventures." He added, "Considering that domestic companies possess manufacturing capabilities for key equipment in the energy storage device industry, the Export-Import Bank of Korea will further expand strategic support to discover green energy new businesses and secure overseas markets."

CEO Jung said at the same event, "This project is significant in that a Korean energy company provides power grid stabilization services to major Eurozone countries using Exim Bank financing and domestically produced equipment." He added, "Hanwha Energy, as an energy specialist leading eco-friendly green growth, will proactively continue to expand global renewable energy supply and related service investments based on strong cooperation with domestic financial institutions such as Exim Bank."

With COVID-19 making it difficult for staff to travel to Ireland, the Export-Import Bank of Korea completed this financial support by actively utilizing drone footage and online conferences.

An Exim Bank official said, "This financial support established a financing model for energy storage device projects, which had been difficult to finance through PF methods until now," adding, "It will serve as a best practice when our companies enter overseas renewable energy businesses in the future."