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Renewable energy

Hanwha Solutions invests $100 mn in US energy startup Lancium

The energy unit aims to expand its eco-friendly energy business portfolio to the supply of clean electricity in the US and Europe

By Nov 24, 2021 (Gmt+09:00)

Hanwha Group headquarters in Seoul
Hanwha Group headquarters in Seoul

South Korea’s Hanwha Solutions Corp. has invested in a US data center energy management startup as part of its new business model to embrace the renewable energy sector in the US and Europe. 

Hanwha Solutions said on Nov. 24 that it has signed a deal on a $100 million equity investment in Lancium Technologies Corp, based in Houston, Texas. The energy unit of chemicals-to-financial conglomerate Hanwha Group secured seats on the startup’s board of directors with the investment. Hanwha Solutions plans to participate in the management of the company going forward.

Lancium said it has closed $150 million in financing from energy companies and investors, with including the biggest chunk from Hanwha Solutions.

It plans to use the proceeds to set up a data center in Abilene, Texas, and supply renewables-produced electricity at low prices. Companies in the center will be able to improve profitability by reducing operations of computing facilities when power prices are high while selling the remaining electricity to domestic power grids.

"This financing allows us to embark on the next high-growth phase of our business,” said Lancium’s CEO Michael McNamara, who founded the company in 2017.

Lancium is a technology company creating software, technical solutions and energy infrastructure that together are decarbonizing the grid. The startup provides high-efficiency data center services based on its own electric management software Smart Response.

TO DIVERSIFY ECO-FRIENDLY POWER BUSINESSES

Hanwha Solutions aims to diversity eco-friendly energy businesses, utilizing Lancium’s know-how on power management, from solar cell facility production to supply of clean electricity to the corporate sector. Currently, the South Korean company operates a 1.7 GW solar cell module plant in Georgia through its unit QCELLS.

"Capitalizing on Lancium's technological prowess, we will expand our clean energy business to target those with intensive energy usage," said Hanwha Solutions.

Hanwha Solutions has already extended its business portfolio in the eco-friendly energy sector with the establishment in the third quarter of a US unit, Hanwha Solutions USA Holdings Corp., to invest in startups there.

Earlier this month, it agreed to buy a 16.67% stake in Norway-based polysilicon manufacturer REC Silicon ASA for $160.5 million to ensure stable procurement of solar cell materials in the US. It also acquired a 100% stake in RES Mediterranee SAS, a French wind and solar power plant operator, for $860 million in August.

Write to Jung-hwan Hwang at jung@hankyung.com

Jongwoo Cheon edited this article.

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