US private equity firm KKR has teamed up with conglomerate South Korea’s SK Inc to launch a KRW2trn (€1.13bn) renewable energy platform in South Korea, seeded with assets held by SK affiliates.
The new platform will hold solar, onshore and offshore wind, and fuel-cell assets previously held by SK Innovation, SK ecoplant and SK eternix, creating a renewable energy business with around 1.7GW of operational capacity and a pipeline that brings total capacity to 10GW, making it Korea’s largest renewable energy business.
Under the terms of the agreement, KKR will take management control during the platform’s initial phase. SK will participate as an equity investor, retaining the option to pursue control rights through future negotiations.
The venture represents the latest transaction between KKR and SK, expanding on a long-standing history of joint collaborations.
Keith Kim, partner at KKR, said: “We are delighted to work alongside SK, a strategic partner with deep local operational capability. Korea is one of Asia’s most attractive renewable energy markets, underpinned by strong corporate demand for clean power from the semiconductor, data-centre and manufacturing sectors.
“Together, we are establishing a leading, scaled renewable-energy platform that can supply reliable clean power to Korea’s most demanding industrial users.”
To read the latest IPE Real Assets magazine click here.
