Hanwha Solutions Corp., the energy unit of chemicals-to-financial conglomerate Hanwha Group, is acquiring a 100% stake in RES Mediterranee SAS, a French wind and solar power plant operator, to enhance its presence in Europe’s renewable energy market.
Hanwha aims to complete the all-cash deal worth 727 million euros or 984.3 billion won ($860 million) by the end of October, the company said in a regulatory filing on Monday.
The latest deal is part of the conglomerate’s aggressive move to nurture renewable energy, including solar, wind and hydrogen, as one of its key growth drivers.
The acquisition of RES Mediterranee from UK green-power developer Renewable Energy Systems, more commonly known as RES Group, marks the first time Hanwha has invested close to one trillion won in the renewable sector.
Established in 1999, RES Mediterranee, also known as RES France, is one of the top 10 renewable energy companies in the European country, running 5 gigawatts of energy at wind farms and solar parks.
Hanwha Solutions CEO Kim Dong-kwan Hanwha Solutions is said to have competed with the likes of French energy giant Total and Germany’s top utility company RWE to clinch the deal.
Demand for renewables assets has surged of late as environmentally conscious investors and energy companies seek green power to meet goals to achieve net-zero emissions in line with the Paris Agreement on climate change.
RES Group says it is the world’s largest independent renewable energy firm, having built projects in the sector generating a total of 21 GW across the globe, and supporting an operational asset portfolio exceeding 7 GW for its clients.
HANWHA’S GREEN PROJECTS
Hanwha Group said the acquisition of RES France will create much-needed synergy with its solar energy affiliate, Hanwha Q CELLS Co., which currently has the rights to develop 10 GW in renewable energy globally.
RES Mediterranee's solar energy parks “The purchase will create economies of scale, bringing our total renewable energy generation capacity to 15 GW,” said Hanwha Q CELLS Chief Executive Kim Hee-cheul.
“The acquisition will enhance Hanwha’s status as a renewable energy leader not just in France but across all of Europe.”
France is one of the greener countries in Europe with its goal to take its renewable energy proportion to 40% by 2030 from the current 22%.
Hanwha Q CELLS has mainly focused on selling solar power modules but recently diversified its business into areas such as producing energy, storing it, and leasing it out to clients.
Hanwha Q CELLS has installed solar panels on its roof. Last year, the company also acquired a 100% stake in Cimarron Composites LLC, a US hydrogen storage tank manufacturer, as Hanwha bet on the growth of hydrogen-fueled cars.
Earlier this year, Hanwha Solutions, led by its CEO Kim Dong-kwan, raised 1.35 trillion won in a rights offering to ramp up its investments in solar and green hydrogen businesses.
