KIND

KIND, 'Team Korea' Leader, Enters the European Combined Heat and Power (CHP) Market

- Covering the Entire Project Lifecycle, from Feasibility Studies to Equity Investment in CHP Projects -

- Driving EPC Participation and Investment by Korean Companies in European Development-Type Projects -

The Korea Overseas Infrastructure & Urban Development Corporation (KIND, President Kim Bok-hwan) announced that it has participated as an investor in a combined heat and power (CHP) plant project currently being developed in Central and Eastern Europe, thereby supporting the entry of Korean mid-sized EPC company BHI into the European energy infrastructure market and facilitating its overseas project awards.

The project aims to construct and operate an environmentally friendly, high-efficiency combined heat and power plant that simultaneously generates electricity and heat using natural gas as fuel. With a capacity of 110 MW of electricity and 90 MW of heat, the plant is expected to replace an aging thermal power facility and contribute to the stable supply of electricity and district heating to up to 400,000 households.

In order to move beyond the conventional overseas construction model centered on simple contracting and to lead high value-added overseas construction through investment-driven development projects, KIND provided integrated support across the entire project lifecycle—from project identification and development to investment. Through this effort, KIND enabled BHI not only to secure overseas construction contracts exceeding USD 300 million, but also to participate in equity investment. As part of this initiative, KIND and BHI signed a Memorandum of Understanding (MOU) on cooperation in CHP projects in 2023. KIND further supported BHI’s entry into the European energy market by providing feasibility study consulting, including local market analysis as well as strategies for market entry and project structuring.

In particular, by participating in the project as the largest shareholder, KIND has enhanced the project’s credibility and stability to a level that enables large-scale financing. KIND is currently working with a group of lenders, including Korean commercial banks, with the goal of signing the loan agreement in the first quarter of next year and commencing construction thereafter.

The project is also significant in that KIND has established a stable partnership with a global environmental and utilities company, which is expected to co-invest in the project, thereby expanding opportunities for participation in infrastructure development projects across Europe. Building on this momentum, KIND plans to further expand its participation in ESG-based infrastructure development projects in Europe and to continuously strengthen its portfolio of investment-driven development projects that enable joint participation by Korean construction companies and power equipment manufacturers.

President Bokhwan Kim of KIND stated, “Europe is a leading market in energy transition and environmentally friendly infrastructure, and its institutional stability allows for high value-added infrastructure investment. This project is particularly meaningful in that it has created opportunities for bilateral cooperation in the energy sector.” He added, “Building on this project, ‘Team Korea,’ led by KIND, will actively participate in the European energy market and take the lead in expanding overseas construction orders and infrastructure investment opportunities for Korean companies.”