April 26, 2024

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[THE INVESTOR] State-run Korea Electric Power Corp. is considering acquiring biomass power plants in the US in a bid to expand its overseas renewable energy business, the Korea Economic Daily reported on Aug. 4.

The potential candidates are two US companies -- Franklin and Madison -- which are currently building 58-megawatt biomass power plants in Georgia. 

Construction work for the two facilities has begun this year and estimated to cost 300 billion won (US$266.80 million).

Franklin and Madison have already signed a long-term contract with Georgia Power, a subsidiary of the largest generators of electricity in US, to supply energy from their new plants.

KEPCO will review the possible takeover of the US companies with advisors and plans to make its decision before November.

The report said, KEPCO will accept bids for a financial advisor that will review the acquisition process until Aug. 11. For the mechanical advisor, the firm has already started looking through candidates last month.

The utility firm has been trying to expand its business in the renewable energy market abroad. KEPCO and National Pension Service jointly bought the entire stake in solar power operating firm Cogentrix Energy Power Management, worth US$34.88 million, from US private equity firm Carlyle last year.

By Song Seung-hyun (ssh@heraldcorp.com)