Shell extends retreat from floating offshore wind with SKorea exit

Hexicon AB

22/02/2024 14:22

By Ron Bousso
       LONDON, Feb 22 (Reuters) - Shell  SHEL.L  will exit a
South Korean floating offshore wind project, it said on
Thursday, the energy firm's latest retreat from the nascent
sector as it focuses on more profitable businesses.
    Shell has agreed to sell its 80% stake in the 1.25 gigawatt
MunmuBaram project off the coast of Ulsan to its joint venture
partner Hexicon  HEXI.ST , the two companies said.
    Hexicon will pay Shell $5 million and an additional $50
million in a profit sharing agreement over three years after the
project starts, the Stockholm-listed company said.
    The offshore wind sector has come under heavy investor
scrutiny  in recent months as supply chain costs soared and
turbines faced technical problems, leading to project
cancellations and heavy writedowns. 
    Floating offshore wind is expected to see explosive growth
in the coming decades but it remains small scale due to much
higher costs compared with fixed-bottom wind farms.
    Shell sold its stakes in several floating offshore wind
projects in recent years, including in Ireland and France, as
CEO Wael Sawan sharpens the company's focus on the most
profitable businesses.
    Shell today has more than 2.1 GW of offshore wind capacity
in operation and over 9 GW of potential projects around the
world, according to its website.
    After the exit from the South Korean project, it will
continue to hold stakes in floating offshore projects in Norway
and the British North Sea.

 (Reporting by Ron Bousso; editing by Jonathan Oatis)
 ((ron.bousso@thomsonreuters.com; +44 (0) 2075422161; Reuters
Messaging: ron.bousso.reuters.com@reuters.net))