South Korea’s Hanwha Group’s green expansion in the United States has gained traction through joint venture in solar power with French energy giant Total.

Hanwha Energy Corp. said Thursday that its wholly-owned U.S subsidiary 174 Power Global and Total signed an agreement to establish a 50:50 joint venture to develop 12 utility-scale solar and energy storage projects of 1.6 gigawatts (GW) cumulative capacity in the U.S. The 1.6-GW is equivalent to powering 300,000 households a year.

On Friday, shares of Hanwha Corp., the holding company of Hanwha Energy’s parent Hanwha Group, gained 1.63 percent to 31,200 won ($28.38) in Seoul. Hanwha Energy is not listed.

The JV projects, transferred from 174 Power Global’s development pipeline, are located Texas, Nevada, Oregon, Wyoming, Virginia, and Hawaii. The first project started production in 2020, and the remainder will go operational between 2022 and 2024, according to the press release.

Hanwha Energy plans to transfer more of 174 Power Global’s solar projects to the joint venture to maximize the synergy with its French partner.

“This transaction is a first significant step for Total in the US utility scale solar market, in line with our 2025 ambition to achieve 35 GW of renewables production capacity worldwide,” said Julien Pouget, Director Renewables of Total.

“Both 174 Power Global and Total have a strong understanding of one another’s business strategies and investment standards. This is a great partnership, and we are excited to work with the Total team and further our joint commitment to clean renewable energy and low-carbon investments,” said Henry Yun, president and CEO of 174 Power Global.

Separately, the latest partnership deal with Total was led by Kim Dong-seon, the third son of Hanwha Group’s chairman, who returned as the head of Hanwha Energy’s global strategy team after a brief departure.

By Choi Keun-do and Cho Jeehyun

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