Aegis Asset Management to Launch Renewable Energy Blind Fund Initiative

Aegis Asset Management is launching a blind fund to invest in renewable energy infrastructure.

On the 14th, Aegis Asset Management announced that it is recruiting investors for an infrastructure fund worth more than 50 billion KRW. The main expected investors are institutional investors such as financial companies that prioritize stability.

This blind fund will primarily invest in hydrogen fuel cells and ESS (Energy Storage System). It plans to enhance stability by investing in businesses that provide power infrastructure through long-term contracts of over 15 years. Additionally, investments will be made concurrently in renewable energy power plants such as solar and wind power.

Aegis Asset Management is focusing on the high stability and growth potential of fuel cell and ESS businesses. This is because the government is promoting the activation of the hydrogen economy and the expansion of renewable energy supply. Aegis Asset Management plans to continuously increase the fund size and secure investment assets in the bidding market.

Previously, Aegis Asset Management secured two projects last year as potential investment targets for the fund. This means they have pre-secured assets accounting for more than half of the fund size, increasing investment visibility.

The first investment target is the Dobong Fuel Cell project. Aegis Asset Management formed a consortium and won the project through a competitive bid in August last year. This project, with a capacity of 39.6MW, plans to supply energy by signing a 20-year purchase contract with hydrogen power mandatory purchasers such as Korea Electric Power Corporation. The fuel cell power plant is scheduled to begin construction in the first half of this year and aims to operate from 2026. The operation period is 20 years.

A notable feature is that the purchase contract was signed in a way that reduces fuel cost fluctuation risk. Power is supplied to hydrogen power mandatory purchasers at a fixed price, and fuel costs incurred in power production are settled separately, reducing the fuel cost fluctuation risk for the power seller.

Additionally, investment will be made in the Jeju Hallim Jangjugi ESS project, which was awarded in October last year. This project is characterized by high revenue stability, as it receives a fixed price per available charging/discharging capacity unit for 15 years regardless of fluctuating charge/discharge amounts. Construction is planned to start this year, with full operation beginning next year.

This also marks the meaningful launch of the infrastructure flagship fund representing the company by Aegis Asset Management’s Infrastructure Division. The Infrastructure Division has an operating team of more than 20 professionals with experience in infrastructure specialized investment firms and energy companies. Division head Tae-seok Oh has dedicated over 20 years to the infrastructure sector, having worked at Macquarie Capital, Samchully Asset Management, and Shinhan Asset Management (formerly Shinhan Alternative Investment Management).

An Aegis Asset Management official said, “With the mandatory renewable energy supply system activating investments in solar, wind, and other renewable energies, and the opening of the hydrogen power bidding market and BESS central contract market, energy-related investment opportunities with stable profit structures are expected to increase further. Starting with the Dobong Fuel Cell project and Jeju Hallim ESS project, we will continue to grow the flagship fund.”

This content was produced with the assistance of AI translation services.