Hanwha Solutions makes trillion-won acquisition in Europe

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Hanwha Solutions makes trillion-won acquisition in Europe

Published: 09 Aug. 2021, 19:54

RES Mediterranee's wind power facilities [HANWHA SOLUTIONS]

Hanwha Solutions said Monday it is buying RES Mediterranee, a French renewable energy company, for 984.3 billion won ($860 million).

“Through aggressive investment in Europe, which is at the forefront of achieving net zero emission by 2050, the company aims to become a leading player in global green energy industry,” Hanwha Solutions said in a release Monday.

Through the acquisition, Hanwha Solutions will acquire RES Mediterranee's solar and wind power projects worth 5 gigawatt (GW) in France.

RES Mediterranee is a wholly-owned subsidiary of RES Group, which was founded in 1981 and has operated 20 GW of green-energy projects in 10 countries. RES Mediterranee specializes in solar and wind energy and energy storage system (ESS) projects.

"Once the acquisition is completed, Hanwha Q Cells has 10 GW of renewable energy projects in Europe, and 15 GW globally, which will allow the company to reach economies of scale," the company said.

The deal is expected to be completed in October.

Hanwha Q Cells is a renewable energy business division of Hanwha Solutions.

RES Mediterranee will act as a European base for Hanwha Q Cells along with its R&D center in Germany, the company said.

Hanwha Solutions, a chemical and energy company 36 percent owned by Hanwha Corporation, has been actively investing in renewable energy businesses around the world.

Last year, Hanwha Q Cells, acquired 100 percent of U.S.-based ESS software developer Growing Energy Laps at an undisclosed price.

Hanwha Solutions raised 1.35 trillion won by issuing new shares early this year and formed a 5-trillion-won green energy-related fund with state-run Korea Development Bank.

The company said Monday it is currently pushing for the acquisition of a company that develops technology related to countering climate change.

"France was considered a country with great potential in renewable energy but had high entry barriers for new players," said Kim Hee-cheul, CEO of Hanwha Q Cells. "The latest acquisition will help Hanwha Q Cells to secure a firm position in not only France but the entire European region."

According to the company, it takes five to seven years to get approval to build energy facilities and operate them in France. At the moment, renewable energy accounts for 22 percent of the energy mix in the country and it aims to increase the share to 40 percent by 2030 along with other EU member states.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]