POSCO Accelerates Eco-Friendly Business Restructuring... Invests 20 Billion KRW to Acquire Management Rights of Wind Power Company

Securing Management Rights of Sinan Green Energy
In Line with Group's Eco-Friendly Business Restructuring Efforts

In front of POSCO Center in Gangnam-gu, Seoul, on the 28th of last month when POSCO announced its plan to transition to a holding company. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Posco Energy, accelerating its shift to eco-friendly business, has invested 20 billion KRW to acquire the management rights of Sinan Green Energy, a land and offshore wind power company.

According to industry sources on the 8th, Posco Energy is expected to complete the acquisition of management rights of Sinan Green Energy, which operates land and offshore wind power projects in the Sinan-gun area of Jeollanam-do, at the regular shareholders' meeting and board of directors next month.

Posco Energy purchased 54.53% of Sinan Green Energy's shares for about 20 billion KRW. Since last year, it has been acquiring shares from Keystone Private Equity (Keystone PE), a private equity fund operator. After investing 2.4 billion KRW to secure an 8.46% stake, the PEF was liquidated, expanding the shareholding ratio to 54.53%. The remaining shares are held by SK E&S (35%), Korea District Heating Corporation (10%), Meritz Securities (0.47%), and others.

The company judged that Sinan Green Energy has high growth potential. This is because the government is reducing the proportion of coal and liquefied natural gas (LNG) to achieve carbon neutrality by 2050, while increasing renewable energy such as wind power. Sinan Green Energy operates an onshore wind power plant with a capacity of 62.7 megawatts (MW) and has obtained permission for a 300 MW offshore wind power project. A company official said, "We will use Sinan Green Energy as a foothold to expand our wind power business."

The POSCO group plans to reduce the proportion of its steel business, known as a high carbon-emitting industry, and expand its eco-friendly business portfolio. Recently, it announced its transition to a holding company and declared a shift to an eco-friendly and new materials group, including batteries and renewable energy. Posco Energy is in charge of the group's energy business. Last year, Posco Energy exited overseas coal power projects by selling its thermal power business in Vietnam.

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