Energy major Shell and Irish offshore renewables developer Simply Blue have opted to exit floating wind joint ventures to better focus on other markets.
Shell signed a sales and purchase agreement with Hexicon transferring full ownership of the MunmuBaram joint venture. Under the agreement, Hexicon will increase its stake in the project from 20 to 100%, increasing the project portfolio by 900 MW.
The MunmuBaram project, originally initiated in 2018, is developing a 1.125GW floating offshore wind farm, planned off the coast of Ulsan City in the southeastern region of South Korea.
Hexion’s full ownership of the MunmuBaram project is supported by the clean energy-focused infrastructure fund Glennmont Partners. The purchase price for the acquisition will be paid with a first down payment of $5m. The agreement also includes a profit-sharing arrangement of up to $50m over three years.
If Hexicon sells its shares in MunmuBaram, the size of the profit-sharing depends on several parameters, including the timing and the net proceeds. Once the transaction is concluded, the project will represent around 15% of Hexicon’s net portfolio in terms of megawatts.
In a separate development, Eolus and Simply Blue Group agreed to transfer the full ownership of the SeaSapphire joint venture to Eolus.
The 50/50-owned SeaSapphire was established in 2022 to jointly develop floating wind projects in the Nordics. The cooperation includes projects in Sweden and Finland. All projects are in early development phases.
Following a strategic review of its portfolio, Simply Blue decided to withdraw from the Nordics and transfer its 50% share to Eolus in exchange for a future profit-sharing mechanism.
