MOU with I Squared Capital to establish joint venture

Targets 1.5GW of solar and BESS assets by 2035

GS Engineering & Construction's Grand Seoul headquarters in Jongno-gu, Seoul. [GS Engineering & Construction]
GS Engineering & Construction's Grand Seoul headquarters in Jongno-gu, Seoul. [GS Engineering & Construction]

GS Engineering & Construction is accelerating its transformation around two strategic pillars — energy transition and property development — to build mid- to long-term growth momentum. Building on the operational discipline established since CEO Heo Yun-hong took office, the company plans to scale up its renewable energy development business and diversify its future project portfolio.

GS Engineering & Construction announced Sunday that it signed an MOU with global infrastructure investment firm I Squared Capital to establish a joint venture for developing domestic renewable energy assets. Senior officials from both companies, including CEO Heo, attended the signing ceremony to discuss areas of cooperation.

Through the joint venture, the two companies aim to develop and secure a combined 1.5 gigawatts of energy transition assets — centered on solar power and battery energy storage systems — by 2035. Solar generation assets are targeted to reach approximately 820 megawatts. Total project costs are estimated at around 3 trillion won (approximately $1.97 billion), with financing to come from a combination of direct investment through the joint venture and external sources including project financing.

Under the agreement, GS Engineering & Construction will lead overall development work — including identifying business opportunities, securing sites, obtaining permits and establishing initial project structures — as well as project management and technical advisory. I Squared Capital will draw on its global investment experience to handle financial planning and investment structuring. Founded in 2012, I Squared Capital manages approximately $60 billion (about 90 trillion won) in assets and will use its renewable energy investment expertise across Asia and global markets to establish a foothold in South Korea.

The partnership marks a significant shift for GS Engineering & Construction, moving beyond its traditional role as an engineering, procurement and construction contractor to become a full developer that takes the lead from the earliest stages of a project and directly secures development rights and energy assets.

"We are expanding our renewable energy business — including solar and energy storage — in response to the global energy transition and the push for carbon neutrality," a GS Engineering & Construction official said. "We will continue to focus on securing domestic and overseas renewable energy development rights and stable power offtake, and will keep identifying new business opportunities."

Meanwhile, GS Engineering & Construction has been consistently expanding its footprint in related businesses at home and abroad. In January, it completed the 12.75-megawatt Patur Solar Power Complex in Maharashtra, India, and began supplying electricity to Korean companies and other local customers there. In April, it partnered with Indian renewable energy firms to prepare for wind repowering and hybrid power supply projects. Domestically, the company operates a 60-megawatt solar power project in Taean, South Chungcheong Province, and has signed an agreement to supply electricity from its 13-megawatt Changgi solar plant to LG Uplus, steadily building a stable revenue base.


hwshin@heraldcorp.com