Hello, everyone, and welcome. Today, I want to give you all an insight into the world of floating wind. There is so much happening right now, not only in Hexicon, but also in the industry in general. My name is Marcus Thor, and I'm the CEO of Hexicon, and this is our operational update for the fourth quarter in 2021. Let's go to slide two, please. The agenda for today is that I'll give you all a brief of Hexicon in terms of what we do and our business model, followed by a market update and an update of our operations, and I'll be ending by looking ahead. Let's get to it and turn to slide four, please. To start off, I want to give a brief of Hexicon. Hexicon is both a developer and foundation technology provider for deep- water offshore wind.
When it comes to the project development side of it, we focus on the origination and early stage development of projects, and we do this in a partnership model with both local and industry partners. By focusing on early stage developments and sharing risk and financial burden with partners, that's our way of keeping the capital intensity low of our operations, and that's how we're able to scale the business model. Hexicon is currently developing projects in key offshore wind markets across Asia and Europe, and we're looking to add new markets to that list in the short term. We have our own IP for a dual turbine floating foundation, the TwinWind, which enables an efficient energy production in deep water with a minimal footprint. As a technology provider, it's about ensuring that that TwinWind foundation technology is kept cutting- edge, protected, and adopted for project specifics.
It's about maturing the technology for it to be used at large scale. These two legs of the business model, being both a project developer and a technology provider, are strongly synergetic. Not only the perhaps obvious that project developments entail opportunities to install the technology, but the other way around is also a fact that market opportunities arise, thanks to having our own patented technology. In the short term, over the next few years, it is the value increase of the project portfolio that will contribute most to the value build of Hexicon. This will then over time change to more coming from the technology offering as this matures and is implemented in greater volumes. Over to slide five, please. Now, jump straight into this. This is where we're heading. This is our vision and goals for 2025.
First of all, it is important to recognize that Hexicon is on a long-term journey. The lead times involved in the offshore wind space are long, regardless of it being projects or technology developments. What the industry offers, however, in combination with Hexicon's position in it, is an opportunity to grow this company into something really meaningful. That will take a few years. There's no way getting around that. Hexicon is a company with an enormous opportunity with its early position and by being exposed to the value potential in both project developments and technology supply. Again, emphasizing that takes a few years. In our vision for 2025, floating wind is an important part of the energy mix. Hexicon has evolved from its early position to a leading player within this sector with a technology that is the obvious choice for developers.
For goals 2025, more concretely, we aim to, within projects, have revenue- generating operations in the three offshore wind regions being Europe, the U.S., and Asia. For technology, have gone through the technology roadmap to the point where the TwinWind is verified, tested, confirming all benefits. On the financial front, for Hexicon's entire operations to be EBITDA- positive. How are we then going to get there? Well, the key building blocks to get us there are to continue to work with best-in-class partners to deepen the collaborations that are in place already and adding new ones. It's about maturing, optimizing, and scaling the technology, ultimately getting it in position for serial fabrication, and continuing to grow the organization to be able to capture the value potential of this growing industry and extending it to the key geographies around the world where we are active.
Slide 6, please. Hexicon is very focused on building a pipeline of projects in attractive markets, and we're doing this for several reasons. First of all, it provides a revenue stream in itself as project value is enhanced through the development phase that then can be monetized through developer fees and project investments, and this is ahead of our technology being verified and implemented at larger scale. Secondly, each project developed is an opportunity to license the technology down the line. The long lead times that offshore wind developments are all about means that a project initiated today might not make its technology decisions until several years later.
Lastly, by putting a core skill set to use of originating early- stage developing projects in core markets and with tier- one suppliers and partners, that's how Hexicon builds its brand as a credible and leading offshore wind player in the floating space. Let's remember that floating offshore wind is in its very beginning of an expected tremendous growth, and our portfolio is well-positioned to be part of this upcoming first round of commercial- scale projects that we do expect during the course of this decade. We pride ourselves with the work done to date of having already achieved a significant portfolio and the several solid partnerships that we've created along the way. Slide seven, please.
Our TwinWind foundation technology is essentially a triangular-shaped floating steel structure that carries, and this is the differentiator, it carries two turbines on the same platform. It is moored through a turret at the front corner, and that's a standard component from the oil and gas industry, and which is basically just a big bearing. This allows the complete unit to freely rotate around that point. That's the key enabler to using two turbines on the same platform and ensuring that they do not disturb one another. What two turbines on the same structure entails is that we can install more power in a given area when compared to the competition. That reduces cost, as well as even further increases the possibility of coexisting with other stakeholders as we're occupying a smaller area.
Ultimately, our two main design drivers are the lowest possible cost of energy and the lowest impact on the environment and surrounding activities. The TwinWind is completely agnostic to the supply chain, including turbines, and is fully scalable to the largest of turbines. Slide 9, please. Floating wind, as a market, is really expanding at an incredible rate right now. As a market update, I've today chosen to mention three significant events. First off, here in Sweden, just a week ago, the Swedish government announced a new directive to the Swedish Energy Agency to produce a new and increased marine spatial plan with an annual target of an additional 90 terawatt-hour of offshore wind. Although there's certainly certain information that I would have wished for example, the timings associated with this goal, I still look very optimistically at this.
Because let's remember, this is the first time we've seen a significant goal for offshore wind in Sweden. Over to the U.S. A few months ago, the Biden-Harris Administration made some significant announcements. A lease auction program over several years and seven different auctions. In fact, the first one out of those seven is today in the state of New York. The momentum that has gathered recently, we think leads to the timing being here and now to position ourselves in the U.S. We were therefore delighted to announce the recruitment of Adrienne Downey as our country manager for the U.S. and Canada a few weeks ago. She most recently comes from New York State's nation's leading offshore wind program with a solid network in both state and federal governments. Lastly, you can't give a market update without mentioning ScotWind. Over to slide 10, please.
ScotWind is the most recent Scottish government lease auction, which companies from around the world have been preparing for years. This was concluded a few weeks ago with the astonishing result of 25 GW of offshore wind and 15 GW of that being floating. A few notables within that, in addition to this, the scale of it's worth noting that Danish Ørsted, the world's largest offshore wind developer, is now for the first time, part of a floating project. If you also look at the auction fees that developers paid for the areas, that price difference between fixed- bottom offshore wind sites and floating wind sites was very little. The industry values deep- water sites highly, even though it is still a lot more immature.
In this context, it's worth mentioning and noting that there are over 10,000 turbines on the seabed around the world, but there are only 18 on floating foundations. Hexicon has not been part of any of these bids, which has been a conscious decision as we've needed to focus elsewhere over the last two years. However, what this means for Hexicon is that there is now an additional 15 gigawatts of potential to supply our technology. The lead times involved in ScotWind mean that we will have verified and proven our technology in advance of any technology decisions being made in these ScotWind projects. Over to slide 12, please. We're going to an operational update.
Across the period, we've taken some important steps forward, and some of the main ones during the fourth quarter are that in South Korea, in our project MunmuBaram, together with Shell, we have been awarded our first so-called electricity generation business license, basically a power permit. That's one out of three, and the subsequent two ones we're expecting within very short. In the TwinWay demonstrator project in Norway, we, during the period, partnered with global contractor Worley to commence the engineering and subsequently the fabrication of the demonstrator unit. In Italy, an expected big offshore wind market and one of the main recipients of the EU Green Deal, we, during the period, partnered with Avapa Energy to develop floating wind opportunities. Lastly, CoensHexicon secured four new areas in South Korea with a combined potential of 1,700 MW. Over to slide 13.
This slide is to show our current portfolio of both projects and prospects. Reminding again you all that we focus on the early- stage developments for high value creation, and we do this in particular in markets that are not yet fully regulated. Such markets where one can obtain seabed rights through bilateral applications is where we with local partners lead the early stage developments. To then grow this into what it is today is a result of partnering relatively early with industry players that adds both competence and funding. I've in this slide and table provided both the gross and net numbers for the portfolio as the net number is relevant for project development revenue. That is, divesting shares of our portfolio, while the gross number is relevant for future technology use and thereto the potential for license revenue.
I'll, in the subsequent slides, dive a bit deeper into the defined projects, and we'll for sure have reason to get back to you all with updates on several of these prospects as well within short. Slide 14, please. In South Korea, the government has recently increased its support for floating wind, by not only as before offering a premium within the green certificate scheme to projects further off the coast, but now also for projects in deeper waters. Encouraged by the government's growing ambitions, the project is pushing forward hard and now targeting to be the first large project in the area to reach financial close. The project during the period secured its first electricity generation business license, and two more are expected to be awarded within very short.
Combined, they provide the power permits needed for an estimated 1,300 MW of floating wind. The seabed over the complete project area has during the fall been investigated through so-called geotechnical and geophysical surveys, and that is a major undertaking. For example, it includes drilling down into the seabed and taking soil samples. To give you a feel for the scale of this complete project area is roughly the size of the entire municipality of Stockholm. Near-term work in the project includes working towards a grid agreement as one of the bigger milestones during the year and continuing to ramp up the environmental impact assessment process. Over to slide 15, please.
Up in North Scotland, the Pentland floating wind farm that we are working on together with Copenhagen Infrastructure Partners is in the middle of the permitting work, a very focused work on the environmental impact assessment. That has actually just recently been amended to include even bigger turbines, now with a rotor diameter of up to 260 meters. It is the completion of the EIA and the subsequent permit application that is the main focus of this project looking ahead. Subject to the timing of all this, the project aims to take part in one of the upcoming U.K. government subsidy auction rounds that are, previously was planned for every second year and is now being intensified more regularly to probably every year going forward in the U.K. Over to slide 16, please.
In Sweden, as mentioned in the market update, the debate is hotter than ever right now around offshore wind, and it's looking to be on top of the agenda for the upcoming elections later this year. We're pushing forward hard here. Our 50/50 joint venture with Aker Offshore Wind, named Freja Offshore, has during the period continued the developments of three large areas on both coasts of southern Sweden. Those are named Mareld on the west coast and Dyning and Kultje on the east coast. Following the public consultations for these three sites, the ramp-up and initiation now of the environmental impact assessment phase is currently ongoing. Over to slide 17. The only way to reach a commercial- scale use of our TwinWind technology is to verify it in full scale and prove its benefits. This burden of proofs lies with us.
The technology roadmap for Hexicon is a two-stage approach. The proof of concept will be achieved within the TwinWay project in Norway. In Norway, our demonstrated project is moving full steam ahead. The project will be a single demonstrator using two Vestas 3-MW turbines. The project is at a level of definition needed to start planning the fabrication, and this is ongoing right now. That work is led by our fabrication partner, Worley, which I was extremely pleased about to conclude, as they provide the experience and credibility as a tier- one contractor to execute that fabrication phase. The project is on track to start the fabrication very late this year, and the operational start at the end of next year.
Slightly behind the TwinWay project in Norway is the TwinHub project in England. This project is a so-called pre-commercial array, which is basically a steppingstone project towards commercial- scale deployment. The English project is in active phase right now, preparing for the upcoming government subsidy auction, which for the first time has an earmarked budget for floating wind. This work is done in partnership with Bechtel, which is a U.S.-based global contractor that will also fabricate this project in England. As a steppingstone, this project is really ideal. It sits in the most mature offshore wind market in the world, and it sits in a region, being the Celtic Sea, where The Crown Estate has recently announced new leasing rounds of 4 GW of floating wind.
The longer term ambition is to use the knowledge and regional network that we gained through TwinHub to build a pipeline of additional prospects in the Celtic Sea. These two projects are quite different in nature and complementary in what they provide Hexicon. The TwinWay project in Norway is a true proof of concept, using a single foundation and with secondhand turbines as a way to reduce time and cost. The location in Norway is about 200 meters of water depth in harsh North Sea environment. The TwinHub project in the U.K., our steppingstone project towards commercial scale deployment, is in a different set of environmental parameters when compared to Norway, consist of two foundations, larger turbines, and stand on its own commercial ground.
Norway gets us to a verified full-scale version demonstrating the performance and benefits of the technology, and TwinHub project in England further expands our learnings of how the technology scales and operates in a wind farm scenario. To conclude, over to slide 18, please. Looking ahead near term, we'll continue to focus on maturing the technology and developing our project portfolio. With regards to the technology, it's very much preparing the design in the TwinWay demonstrator project for construction start towards the end of the year. Significant focus is also placed on developing current projects and prospects further to enhance the portfolio value, to provide a long-term pipeline of opportunities to license the technology.
We'll continue to originate and develop new opportunities in attractive markets, and we'll continue to ramp up our organization and capacity, both locally here in Sweden, but also abroad, to make sure that we capture and can keep up with the enormous pace of the developments that floating wind market is now experiencing. With that, I'd very much like to thank everyone for listening and would now welcome any questions there may be. I would also like to take the opportunity to say that I am accompanied here by our CFO, Anders Rössel, for the Q&A session. Thank you very much. Just wanna check with the operator. We don't have any in the email at the moment, if there are any other ways to get questions through. No? Okay.
Just if you're hearing me, operator, if you are seeing any questions that have not come through email, we haven't seen any in our email at the moment. If that's not the case, here we have one question. Regarding ScotWind and the potential with 15 GW floating wind announced, what is the potential for Hexicon here in terms of number of turbines that you could supply, and what is the revenue potential for you? Well, I haven't done that. This comes from SpareBank 1 Markets, from Tommy Johansen. We haven't done that math, to be honest. Let's just say it's enormous. 15 GW. Out of all these projects, most, a lot of the global developers are there, and it's a really big number.
I mean, imagine if we're able to capture just a portion of that, it could quickly grow to, you know, hundreds of turbines. We haven't done the math, so I'll have to get back to you with numbers on it. The importance is to recognize the scale, and it's important also for Hexicon to recognize the timelines involved, which means that we have ample time to verify our own technology. The second question here is, could you shed some more light on your expansion plans in North America? How big could this market be for you, and what can we expect on news related to North America going forward? First of all, I think that North America is one of the really big long-term markets.
What's happening now with the Biden-Harris administration and deciding on the multiple lease auctions over the next few years, is to make sure that whatever happens after his four years, if he continues in office or not, those auctions are there and decided upon and set. He's really speeding this up, that offshore wind will happen in big scale. It's really big in terms of market. In terms of the way the market is and the prerequisites to operate in the market, it is slightly different than several of the markets that we have been active in so far, where we talked about Hexicon leading and developing early-stage developing projects in the more unregulated markets. The U.S. is certainly not an unregulated market. With BOEM deciding on lease auction and areas, this is the place to go, place your bids.
It's a different model where a company of Hexicon size is very unlikely to go in by itself and lead and think that they can have a chance of winning an auction. Again, it's a partnership approach. I think if anything, which was part of the question, what one can expect in terms of news for the North American market, it's around partnerships that creates the possibility to partake in these future auctions. Let's see, one more question here. Sweden recently launched increased floating offshore wind plans. How does this impact your projects in the country? What is the next step for you here? Well, certainly an increase, and as I mentioned, the first time we've seen a target like this for offshore wind in Sweden, so that is very positive. Still a lot of uncertainties.
The fundamental need and the driver for us here in Sweden is the huge electrification of Sweden as a society and industry, and the shortage of good solutions to provide that electricity. This is where offshore wind in general, and we think floating wind makes a lot of sense in the Swedish market to be part of that energy mix going forward. We are continuing full speed ahead on these three sites, two on the east coast and one on the west coast.
Let's see what's in now. Again, just to remind telephone participants, if you would like to ask a question, please press zero one on your telephone keypads.
Here is one more question here. What about Italy? The growth potential here and steps forward. Well, what we're expecting in Italy, and there is a reason for joining, is that we are seeing a lot of attention on it being one of the main recipients of the European Green Deal, and that we expect later in the year potentially already for legislation to be in place in Italy. This is an early-stage positioning that we think is the right timing now. Our partner of Avapa Energy have been very successful in the onshore space. This is a typical partner that we're looking at for the early-stage developments, where balance sheet is not the most important thing, but it's the experience and network locally in that market to develop renewable projects.
We're full speed ahead in the site selection phase and defining some of the top-ranked sites at the moment. Those are all the questions we have in so far.
Yeah. I think there was a problem with some of the operators, but that's it.
That's what we had. Operator, do you have anything else?
We have no questions on the telephone lines at this time.
Okay. Well, I'd again like to thank everyone for listening, allowing us to present an update, and look forward to seeing and speaking to you all soon again. Thank you very much.
Thank you. Bye.