Shinhan Asset Management Joins Ireland Long-Duration ESS Project

Shinhan Asset Management will take part in a large-scale long-duration energy storage system (ESS) project in Ireland from the early development stage as both a financial partner and project sponsor, leading the design of its financial structure.

Attendees pose for a commemorative photo at the MOU signing ceremony for the joint development of the Coolpowra ESS in Ireland. Photo provided by Shinhan Asset Management.

On November 12, Shinhan Asset Management said it would participate from the development stage in the Coolpowra long-duration ESS project, which is being pursued in County Galway in western Ireland, and work on designing its equity and governance structures and financial arrangements, as well as securing investment.

On November 10, Shinhan Financial Group signed a memorandum of understanding (MOU) at the Irish Embassy in Seoul with the Korea Overseas Infrastructure & Urban Development Corporation (KIND), Ireland-based energy developer Lumcloon Energy, and Hyosung Heavy Industries to jointly develop the Coolpowra ESS project. Irish Ambassador to Korea Sean Hoy and Enterprise Ireland, Ireland's trade and investment agency, attended the signing ceremony as witnesses.

The project will be carried out through a special-purpose vehicle (SPV). Shinhan Bank, another group affiliate, will arrange senior project financing (PF) loans, while Shinhan Asset Management will raise funds and combine them with investments to finance the project. From the early development stage, Shinhan Asset Management and Shinhan Bank will work with local developer Lumcloon Energy to design the SPV's equity and governance structures and financial arrangements. They also plan to help improve the project's bankability.

Building on these roles, Shinhan Asset Management is pursuing plans to participate in the Coolpowra ESS project as both a financial partner and project sponsor. The significance lies in working with the local developer to define key project terms at an earlier development stage, rather than investing in equity in a completed asset.

The Coolpowra ESS project involves building a large-scale battery energy storage system with an output of 300 MW and a total capacity of 2,400 MWh, capable of supplying electricity for up to eight hours. In Ireland, demand for facilities that can offset fluctuations in power generation has been rising rapidly amid a surge in electricity demand from the expansion of data centers and a growing share of wind power in the energy mix. Once completed, the system is expected to play a key role in stabilizing the local power grid by storing surplus electricity generated by wind power and supplying it during peak demand periods.

A Shinhan Asset Management official said, "Ireland is a market with structural demand for flexible power sources and energy storage facilities, driven by the expansion of data centers and the growing share of renewable energy. By participating from the early development stage, we will create a financial structure that enables the equipment and construction capabilities of Korean companies to be reflected in the project."

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