Seoul: GS Engineering and Construction (E and C) Corp. announced its collaboration with the U.S.-based infrastructure investment firm I Squared Capital to develop renewable energy and battery energy storage systems in South Korea. The partnership aims to bolster the country's transition to sustainable energy sources.

According to Yonhap News Agency, the South Korean construction giant signed a memorandum of understanding with I Squared Capital to establish a joint venture. This venture will focus on solar power and energy storage projects, targeting a total of 1.5 gigawatts (GW) of energy-transition assets by 2035. This includes approximately 820 megawatts (MW) dedicated to solar power generation capacity.

The estimated cost for the total project stands at around 3 trillion won, equivalent to approximately US$1.95 billion. The partners are exploring a financing structure that will blend direct investment with external funding sources, including project financing, to support these initiatives.

Under the terms of the agreement, GS E and C will take charge of project development activities, which encompass site acquisition, permitting, and project structuring. Meanwhile, I Squared Capital will focus on investment structuring and arranging financing for the projects.