Milestone reached with two additional Electricity Business Licenses secured for floating offshore wind project-MunmuBaram in South Korea

The MunmuBaram-project is set to play a significant role in the progress regarding commercial scaled floating wind farms. Another milestone in the project was just reached when the project was granted two additional Electricity Business Licenses (EBL). With now a total of three EBLs, the Ministry of Trade, Industry and Energy has granted the MunmuBaram project exclusive development rights to progress the total planned output of 1.3-gigawatt (GW).

The MunmuBaram is a floating offshore wind project off the coast of Ulsan, South Korea. It is a joint venture (JV) between Shell (80%) and CoensHexicon (20%), where CoensHexicon is a JV between Hexicon (49%) and Korean company COENS Co (51%). The first EBL out of a total of three possible was secured for the area in November 2021. The hope was to secure all three which would take the project further into the intermediate stage of development, this goal has now been reached. This means that the project can go full steam ahead towards the next step which is to secure a grid connection agreement. The CEO of Hexicon, Marcus Thor is excited and happy about the latest development for the project:

“To have been granted all three EBLs means that we can now fully focus on realizing the total planned output of 1,3 GW of the project, which has the possibility to bring renewable offshore wind power to more than 1 million South Korean households. The next milestone will be to secure a grid connection agreement. This can happen already this year, well ahead of the planned fabrication start.”

Since 2019, the MunmuBaram-project has been carrying out the groundworks such as the wind data measurement campaigns. In September 2021, MunmuBaram was the first floating offshore wind developer in South Korea to successfully complete the geotechnical and geophysical surveys needed. It currently continues to progress the project development through Environmental Impact Assessment (EIA), marine traffic survey, cultural heritage survey and other activities. Subject to future investment decisions, the MunmuBaram-project will be developed in phases, and once constructed, expected to generate up to 4.2 terawatt-hour (TWh) of clean electricity every year.

More information about the MunmuBaram-project can be found on the website: http://www.munmubaram.com

Ytterligare tvÄ elaffÀrslicenser sÀkrade för MunmuBaram-projektet i Sydkorea

MunmuBaram-projektet kommer att bli en av vÀrldens storskaliga flytande vindkraftsparker nÀr det Àr klart. Ytterligare en milstolpe i projektet nÄddes nÀr projektet nyligen beviljades ytterligare tvÄ elaffÀrslicenser (EBL). Projektet har nu totalt sÀkrat tre EBL:er frÄn Ministeriet för handel, industri och energi, som dÀrmed beviljat MunmuBaram-projektet exklusiva utvecklingsrÀttigheter för den totala planerade produktionen pÄ 1,3 gigawatt (GW).

MunmuBaram Àr ett flytande havsvindprojekt utanför Ulsan, pÄ Sydkoreas kust. Det Àr ett joint venture (JV) mellan Shell (80 %) och CoensHexicon (20 %), dÀr CoensHexicon Àr ett JV mellan Hexicon (49 %) och det koreanska företaget COENS Co (51 %). Den första EBL:en av totalt tre möjliga sÀkrades för omrÄdet i november 2021. Förhoppningen var att sÀkra alla tre vilket skulle ta projektet vidare in i ett mellanstadium av utveckling, detta mÄl Àr nu uppnÄtt. Det innebÀr bland annat att projektet kan sikta mot nÀsta steg i utvecklingen vilket Àr att sÀkra ett nÀtanslutningsavtal. VD för Hexicon, Marcus Thor, glÀds Ät den senaste utvecklingen för projektet:

"Att ha beviljats alla tre EBL:erna Ă€r fantastiskt och betyder att vi nu kan fokusera helt pĂ„ att realisera den totala planerade effekten pĂ„ 1,3 GW. Projektet har potential att ge mer Ă€n 1 miljon sydkoreanska hushĂ„ll ren el frĂ„n flytande havsbaserad vindkraft. NĂ€sta milstolpe blir att sĂ€kra ett nĂ€tanslutningsavtal. Vi Ă€r hoppfulla om att det kan hĂ€nda redan i Ă„r, vilket Ă€r lĂ„ngt före den planerade tillverkningsstarten.”

Sedan 2019 har MunmuBaram-projektet genomfört markarbeten som vinddatamÀtningar. I september 2021 var MunmuBaram den första flytande vindkraftsutvecklaren till havs i Sydkorea som framgÄngsrikt genomförde de geotekniska och geofysiska undersökningar som krÀvdes. Projektet fortsÀtter nu framöver med miljökonsekvensbedömningar (MKB), sjötrafikundersökningar, kulturarvsundersökningar och andra aktiviteter. Med förbehÄll för framtida investeringsbeslut kommer MunmuBaram-projektet att utvecklas i etapper, och nÀr det vÀl Àr byggt förvÀntas det generera upp till 4,2 terawatt-timmar (TWh) ren el varje Är.

Mer information om MunmuBaram-projektet hittas pÄ hemsidan: http://www.munmubaram.com

Year-end report 2021

QUOTE FROM MARCUS THOR, CEO
“There should no longer be any doubt about the potential and viability of floating offshore wind. 2021 was a breakthrough year for Hexicon – our project portfolio doubled, adding a gross 5 000 MW of projects and prospects and we achieved the highest annual revenue number ever. We are now demonstrating the potential of the business model as a project developer with our own technology.”

October – December 2021

  • Net revenue amounted to 6.1 (0.8) MSEK.
  • Operating profit/loss was -15.0 (-24.6) MSEK.
  • Profit/loss before tax for the period was -17.4 (-25.1) MSEK.
  • Earnings per share basic and diluted was -0.05 (-0.11) SEK.
  • Cash flow from operating activities was -11.5 (3.5) MSEK.
  • At the end of the period the cash at hand amounted to 289.6 (106.6) MSEK.

January – December 2021

  • Net revenue amounted to 23.1 (4.4) MSEK.
  • Operating profit/loss was -49.8 (-35.9) MSEK.
  • Profit/loss before tax for the period was -51.0 (-36.9) MSEK.
  • Earnings per share basic and diluted was -0.16 (-0.19) SEK.
  • Cash flow from operating activities was -52.9 (-3.4) MSEK.

Significant events during the quarter

  • CoensHexicon and Shell’s JV, MunmuBaram, was granted Electricity Business License, a big step towards a fully permitted wind farm in Ulsan, South Korea
  • Additionally, CoensHexicon was granted rights to four new water areas in the seas off South Korea
  • Partnered with Worley for the design and fabrication of the TwinWay demonstrator, Norway

Significant events after the end of the quarter

  • TwinHub was awarded a marine license for the installation of a small floating wind farm in England
  • Recruited top offshore wind executive Adrienne Downey, to expand Hexicon’s North America presence and pipeline

COMMENT FROM MARCUS THOR, CEO
“2021 was a truly remarkable year for Hexicon. With several large projects under way and a patented technology being matured towards fabrication, Hexicon has created an early mover position to partake in the first wave of commercial projects that will roll in over the next few years. The partnership-based and asset light business model has allowed us to accelerate our growth plan, steadily increasing revenue over the year, and keeping us within the budget that was communicated at the time of the IPO.

I am equally excited over the momentum that the industry is experiencing where an increasing number of nations embrace the opportunity of floating wind, adapting their legislation and initiating new auctions. Sweden is no exception where offshore wind is on top of the agenda in the upcoming elections later this year and very recently, the Swedish Government presented its first ever offshore wind target.

After a successful 2021, our focus now shifts to the future. We aim to further increase and mature our project portfolio which is where most of the revenue will come from in the short term, whilst in parallel proving the benefits of our technology for deployment in multiple projects.”

Presentation
Marcus Thor will provide an update of the operations in a conference call and webcast today at 11.00 CET.
Dial-ins for conference call: SE +46 8 5055 8350 / UK: +44 3333 009 030
Link to webcast: https://tv.streamfabriken.com/hexicon-q4-2021

Link to the report
The interim report is attached to this announcement and available at https://www.hexicon.eu/investors/report-center/

Invitation to presentation

Hexicon will publish its year-end report for 2021 on 23 February 2022 at 08:00 CET. On the same day at 11:00 CET, the company’s CEO Marcus Thor will provide an update of the operations in a conference call and webcast.

The presentation will be held in English and concluded with a Q&A session.

Dial-ins for conference call:
SE: +46 8 5055 8350
UK: +44 3333 009 030

Link to webcast: https://tv.streamfabriken.com/hexicon-q4-2021

A recording of the presentation will be available afterwards.

Inbjudan till presentation

Hexicon kommer att offentliggöra sin bokslutskommuniké för 2021 den 23 februari 2022 klockan 08.00. Samma dag klockan 11.00 ger bolagets vd Marcus Thor en verksamhetsuppdatering via en telefonkonferens och webbsÀndning.

Presentationen sker pÄ engelska och avslutas med en frÄgesession.

Telefonnummer för deltagande:
SE: +46 8 5055 8350
UK: +44 3333 009 030

LĂ€nk till webcast: https://tv.streamfabriken.com/hexicon-q4-2021

En inspelning av presentationen kommer att finnas tillgÀnglig i efterhand.

Magnus Hallman Appointed CEO of Freja Offshore

Hexicon and Aker Offshore Wind have recruited Magnus Hallman as Chief Executive Officer (CEO) of Freja Offshore AB (“Freja Offshore”), the 50/50 joint venture (JV) established in 2021.

Magnus Hallman joins Freja Offshore from Svenska KraftnĂ€t Gasturbiner AB where he held the position of CEO. KraftnĂ€t Gasturbiner AB, a gas and turbine facilities operator, is owned by Svenska KraftnĂ€t, the Swedish transmission system operator (TSO). Mr. Hallman, a Swedish citizen, has extensive experience from executive management positions and board of directors’ roles in several companies, including CBRE and Johnson Controls. His industry experience and know-how of the Swedish energy market will be invaluable to Freja Offshore as the company moves to realize offshore wind projects in Sweden.

“The recruitment of a CEO is a milestone in the establishment of Freja Offshore, which now can accelerate its work in developing floating wind projects offshore Sweden. Sweden’s plans to produce all its energy from renewable sources by 2040, and to achieve carbon neutrality by 2045, will require a forceful transition where floating wind power will play an important role. Magnus has the perfect profile to take on the CEO role of Freja Offshore and we will now enter the next stage of our development,” said Tom Selwood, Chief Financial Officer of Aker Offshore Wind and Chairman of the Board of Freja Offshore.

“I am thrilled to join Freja Offshore as I am convinced that offshore wind will constitute an important component in the future Swedish energy mix and support Sweden’s target to achieve climate neutrality. In addition to phasing out old energy sources, energy demands will continue to increase from population growth and the electrification of infrastructure and industry. All in all, and together with the Board and employees of Freja Offshore, I see great opportunities ahead for clean, reliable and cost-effective energy production offshore,” said Mr. Hallman.

Mr. Hallman will commence as CEO of Freja Offshore in Q2 2022.

Magnus Hallman ny vd för Freja Offshore

Hexicon och Aker Offshore Wind har rekryterat Magnus Hallman som verkstÀllande direktör för sitt gemensamma 50/50 joint venture Freja Offshore AB, som bildades 2021.

Magnus Hallman kommer nÀrmast frÄn rollen som vd för Svenska KraftnÀt Gasturbiner AB, som driver och förvaltar de gasturbinanlÀggningar som Svenska kraftnÀt anvÀnder i sin verksamhet. Magnus har omfattande erfarenhet frÄn ledande positioner och som projektledare i flertalet bolag, bland annat CBRE and Johnson Controls. Hans branscherfarenhet och kunskap om den svenska energimarknaden kommer vara viktiga tillgÄngar nÀr Freja Offshore ska realisera havsbaserade vindkraftsprojekt i Sverige.

”Rekryteringen av en vd Ă€r en milstolpe i för etableringen av Freja Offshore, som nu kan accelerera sitt arbete med att utveckla flytande vindkraftsprojekt pĂ„ svenska hav. Sveriges planer pĂ„ att generera all sin energi frĂ„n förnybara energikĂ€llor till Ă„r 2040 och att uppnĂ„ koldioxidneutralitet till Ă„r 2045 kommer krĂ€va en kraftig omstĂ€llning dĂ€r flytande vindkraft kommer spela en viktig roll. Magnus profil Ă€r perfekt för vd-rollen i Freja Offshore nĂ€r vi nu gĂ„r in i nĂ€sta fas av vĂ„r utveckling”, sĂ€ger Tom Selwood, CFO för Aker Offshore Wind och styrelseordförande för Freja Offshore.

”Jag Ă€r vĂ€ldigt glad att ansluta till Freja Offshore och övertygad om att havsbaserad vindkraft kommer utgöra en viktig komponent i den framtida svenska energimixen och understödja Sveriges mĂ„l att nĂ„ klimatneutralitet. Utöver att gamla energikĂ€llor ska fasas ut kommer ocksĂ„ efterfrĂ„gan pĂ„ energi till följd av befolkningstillvĂ€xt och elektrifiering av infrastruktur och industri att öka. Allt sammantaget ser jag stora möjligheter att tillsammans med styrelse och övriga medarbetare pĂ„ Freja Offshore bana vĂ€g för ren, pĂ„litlig och kostnadseffektiv energiproduktion till havs”, sĂ€ger Magnus Hallman.

Magnus Hallman tilltrÀder rollen som vd för Freja Offshore under andra kvartalet 2022.

Hexicon recruits top offshore wind executive to expand Hexicon’s North America presence and pipeline

Adrienne Downey, a leading figure in U.S. offshore wind, will join Hexicon as Principal Engineer and Country Manager for the US and Canada, on February 1st, 2022, taking Hexicon a step further in building a North American presence and pipeline.

Adrienne most recently was the Principal Engineer for offshore wind for the New York State Energy Research and Development Authority (NYSERDA). During her tenure, Adrienne led NYSERDA’s nation-leading offshore wind program with the goal of reaching 9 gigawatts (GW) by 2035, and successfully procured an excess of 4.3 GW. Previously, Adrienne supported the establishment of wind turbine original equipment manufacturer ENERCON’s operations in North America.

Major new commitments in the US supporting offshore wind signal potential for as much as 35 GW of floating wind power by 2040, and almost 60 GW by 2050, on President Biden’s path to 110 GW of offshore wind by 2050. Glidepaths for leasing, permitting, and major investments are set to achieve 30 GW of offshore wind power by 2030, which will trigger more than USD 109 billion total expenditures.

The Pacific Coast, the Gulfs of Mexico and Maine and deeper waters of the Central Atlantic are expected to benefit from major deployments of floating offshore wind as the ocean is too deep for bottom-fixed wind energy in these geographies. Floating offshore wind will therefore offer a critical pathway to meet these regions’ ambitious clean energy goals through reliable cost-effective renewable energy.

Marcus Thor, CEO of Hexicon said: “We are honoured to have Adrienne Downey join us as the Principal Engineer and Country Manager for the US and Canada; two countries with large ambitions for energy transition. Adrienne has extensive experience in offshore wind power and we can’t think of a better champion for Hexicon in North America. We now look forward to having Adrienne help us leverage both our project development know-how and our technological innovations over the coming years in North America including establishing strategic partnerships to support large-scale lease auctions, advancing local relationships in supply-chain development, and championing priority research and development.”

Adrienne Downey said: “I am delighted to take the helm of Hexicon in the US and Canada at such an exciting moment. Offshore wind is poised to bring tremendous benefits and cost-effective renewable development to the global fight against climate change, and faster deployment of deep-water technology is key to unlocking this potential.  After years of proud public service leading the nation’s largest and most sophisticated offshore wind market, I am excited to help translate my deep sector knowledge to this critical technology inflection point, supporting rapid deployment and local partnerships to unlock unprecedented economic ecosystems.”

Hexicon was founded in 2009 and is headquartered in Stockholm, Sweden focusing on the development of floating offshore wind farms and designs dual turbine floating wind power platforms.
Hexicon and its diverse global team are dedicated to the deployment of large-scale and environmentally friendly energy production. Hexicon’s technology and knowledge are focused on delivering a cost effective and reliable supply of electricity generation, while maintaining a sustainable society for future generations.

Hexicon’s patented floating platforms can be positioned further offshore and in deeper waters than conventional fixed bottom offshore wind designs, resulting in better wind conditions. Hexicon’s proprietary dual turbine floating wind power platforms, TwinWindℱ, also allows the platform to align with the direction of the wind, maximizing efficiency with enhanced cable, foundation, installation, and environmental efficiencies.

Hexicon rekryterar ledande branschprofil inom havsbaserad vindkraft för att expandera Hexicons nÀrvaro och projektportfölj i Nordamerika

Hexicon har rekryterat Adrienne Downey, en ledande branschprofil inom havsbaserad vindkraft i USA, som Principal Engineer och landschef för USA och Kanada. Adrienne börjar den 1 februari 2022 och Hexicon tar dÀrmed nÀsta steg i att bygga upp bÄde nÀrvaro och projektportfölj pÄ den nordamerikanska marknaden.

Adrienne kommer nÀrmast frÄn rollen som Principal Engineer för New York States program för havsbaserad vindkraft (New York State Energy Research and Development Authority, NYSERDA) med mÄlet att producera 9 GW Är 2035. Projektet har under Adriennes ledning hittills sÀkerstÀllt försörjning motsvarande över 4,3 GW. Innan dess har Adrienne varit delaktig i att etablera vindturbinstillverkaren ENERCON:s verksamhet i Nordamerika.

Stora nya Ätaganden i USA som stöder havsbaserad vindkraft har signalerat potential för sÄ mycket som 35 GW flytande vindkraft till Är 2040, och nÀstan 60 GW Är 2050, baserat pÄ president Joe Bidens plan med mÄlet att nÄ sammanlagt 110 GW havsbaserad vindkraft till Är 2050. Sammantaget förvÀntas 109 miljarder dollar i utgifter för leasing, tillstÄndshantering och stora investeringar i syfte att uppnÄ 30 GW havsbaserad vindkraftsproduktion till Är 2030.

Stillahavskusten, Mexikanska golfen, Maine och djupare vatten utanför Central Atlantic förvÀntas dra nytta av stora utbyggnader av flytande vindkraft eftersom havet Àr för djupt för bottenmonterad vindkraft i dessa geografier. Flytande vindkraftteknik kommer dÀrför att erbjuda en viktig vÀg för att uppfylla dessa regioners ambitiösa mÄl för ren, pÄlitlig och kostnadseffektiv energiproduktion.

”Vi Ă€r vĂ€ldigt stolta att ha rekryterat Adrienne Downey som Principal Engineer och landschef för Hexicon i USA och Kanada – tvĂ„ lĂ€nder med höga ambitioner nĂ€r det gĂ€ller energiomstĂ€llning. Adrienne har mycket omfattande erfarenhet av havsbaserad vindkraft och jag kan inte tĂ€nka mig en bĂ€ttre ledare för Hexicon pĂ„ plats. Vi ser nu fram mot att tillsammans med Adrienne etablera sĂ„vĂ€l vĂ„rt projektkunnande som vĂ„ra tekniska innovationer under de kommande Ă„ren i Nordamerika, dĂ€r vi kommer ingĂ„ strategiska samarbeten inför storskaliga auktioner och utveckla lokala relationer i försörjningskedjan,” sĂ€ger Marcus Thor, vd för Hexicon.

”Jag Ă€r glad att fĂ„ ta ledartröjan för Hexicon i USA och Kanada just i detta spĂ€nnande lĂ€ge. Havsbaserad vindkraft stĂ„r redo att genom kostnadseffektiv utveckling av förnybar energi bidra till den globala kampen mot klimatförĂ€ndringarna – och snabbare utbyggnad av djuphavsteknik Ă€r nyckeln till att frigöra denna potential. Jag har i mĂ„nga Ă„r lett USA:s största och mest sofistikerade vindkraftsmarknad till havs, och Ă€r glad att fĂ„ anvĂ€nda min sektorkunskap till att stödja snabb implementering och utveckling av lokala samarbeten för Hexicons teknik och projektkunnande,” sĂ€ger Adrienne Downey.

Hexicons patenterade flytande plattformar kan placeras lÀngre ut till havs och pÄ djupare vatten Àn konventionella bottenförankrade vindkraftstekniker, vilket innebÀr bÀttre vindförhÄllanden. Hexicons egenutvecklade flytande plattform med tvÄ turbiner, TwinWind, möjliggör ocksÄ att plattformen rör sig efter vindriktningen vilket maximerar effektiviteten.

Hexicon AB’s Twin Hub stepping stone project has now been awarded a marine licence for the installation of an offshore floating wind demonstrator in the Celtic Sea

Twin Hub floating demonstrator project in the Celtic Sea has now been awarded a marine licence, for a renewable energy test site in Cornwall, South West England. The marine licence is the latest consent for the project which was awarded a Section 36 consent in 2020. Hexicon AB, the global offshore wind developer and technology provider, completed the acquisition in July 2021 of the consented site and will will deploy Hexicon’s innovative twin-turbine floating foundation for a 30-40MW floating offshore wind demonstration project.

Hexicon is working with Bechtel, a global leader in engineering, construction, and project management to deliver the scheme.

The project is set to be the first floating offshore wind project in the Celtic Sea, a key stepping stone to the UK Government achieving its targetted 1GW of floating wind by 2030. The Celtic Sea is  an important area for floating offshore wind development, with plans for up to 4GW of new floating wind capacity to be unlocked in the Celtic Sea by 2035, as announced by The Crown Estate in November 2021. Hexicon believe their project will be the first stepping stone to facilitating future projects in the Celtic Sea.

Hexicon’s CEO Marcus Thor said: “We hope that the TwinHub project will set a precedence for floating wind in the Celtic Sea. Being first up offers an opportunity for both us and the local supply chain to develop together, and build long term relationships to support Hexicon’s long term ambition of developing large scale floating wind projects in the UK. These projects will be capable of delivering consistent and secure renewable energy at the lowest possible cost. We look forward to developing these relationships in the coming years and supporting the plans for the Celtic Sea.”

The project plans to utelise existing infrastructure already installed on the site, including an offshore export cable, onshore substation and existing grid connection agreements.