Government rejects BlackRock-backed offshore wind project

The Korean government has disapproved an offshore wind project pushed by a sub-subsidiary of global investment firm BlackRock, citing a lack of data to prove its financial ability and power system issues in the region, officials said Tuesday.

A wind power generation complex in the southern county of Sinan [JOONGANG PHOTO]

The Korean government has disapproved an offshore wind project pushed by a sub-subsidiary of global investment firm BlackRock, citing a lack of data to prove its financial ability and power system issues in the region, officials said Tuesday.

Kredo Holdings is working to build five wind power generation complexes in waters off the southeastern county of Sinan worth over 10 trillion won ($7.49 billion) and recently filed for a business license.

But an electricity commission under the Ministry of Trade, Industry and Energy, denied permission, saying part of the documents that Kredo submitted failed to meet due criteria needed to prove its financial ability.

The commission also noted the current electrical power systems in the region would not be able to support four out of the five envisioned complexes.

The South Jeolla Province regions have long suffered a lack of power transmission and other related infrastructure.

"The government plans to build an underwater high-voltage direct current transmission system in the Yellow Sea by 2036 and to further seek measures to enhance power transmission capabilities in the region," a ministry official said.

The power capacity of Kredo's five wind power complexes is expected to amount to 2 gigawatts, and if approved, it will be the largest-ever offshore wind power project in Korea.

Last year, Denmark's Orsted was granted a 1.6 GW electricity business license for an offshore wind project off the coast of the western port city of Incheon, which will be the largest such project in Korea when completed in the early 2030s.

In 2021, Global Renewable Power Fund III, managed by BlackRock, became the sole shareholder of KREDO Holdings.

Yonhap