Hello everyone. Thank you all for joining. I want to provide an update of Hexicon's Developments and Plans, as well as providing an insight into the world of floating offshore wind. My name is Marcus Thor, I'm the CEO of Hexicon. Welcome. The agenda for today is to first present a brief of both floating wind and as a segment and recent market developments. This will be followed by an operations update, and I'll be ending with a look ahead. Let's get to it. To start off is a high-level summary of our key activities during Q4. On the financial front, very pleasing was that we put in place a convertible loan of SEK 82.5 million, which shall be seen as a bridge facility to get us into the next stage of our journey.
This next stage that we are now in will contain partial divestments of selected projects, processes that have already started. Looking at the cash outflow across the year, just over half has gone towards developing the project portfolio and just shy of 40% towards the technology. I'll come back to this in a bit more detail. Operationally, we've crossed some big milestones across our portfolio, especially in Italy, where we've secured site control for an additional 2.5 GW, as well as grid capacity for over 7 GW. This work is conducted through our 50/50 joint venture with local developer Avapa Energy. Over in Korea, within our MunmuBaram project together with Shell, we've now entered a preferred supplier agreement with Vestas, which is their first agreement of the sort for a commercial scale floating wind farm.
Lastly, the European Patent Office announced its intention to grant us our patent application for our unique taut mooring system. If we look ahead across this year, we'll continue to invest in our growth, both developing projects as well as progressing the TwinWind technology, mainly through the TwinHub project in the U.K. In addition to this, we'll also ramp up our revenue line from the project development side of the business through divesting parts of selected projects. Now, a few slides on the industry and recent market developments. There are over 10,000 turbines installed on the seabed around the globe. As of yet, only 20 or so turbines are installed on floating foundations. Floating offshore wind as an industry is on the verge of commercialization. Several gigawatt projects are being planned with construction start from 2025 and onwards.
This growth is expected to be exponential. A key driver for this growth is the obvious increasing demand for clean energy, but also combined with the fact that onshore space is limited, most of the global demand is near coastlines, and that natural waters across the globe are to 80% deep. If we look across the segment, that is floating wind, we are seeing signs of a commercial industry taking shape. More transactions are taking place, both government-led seabed lease auctions, as well as private development phase sales. More and more institutional capital is entering the space and have concluded that floating wind is not only attractive in terms of growth potential, but now also comes with an acceptable balance between risk and reward. Here's looking at a few specific market developments. The U.S., which under the Biden administration, has increased its offshore wind ambitions drastically.
They, in December, held its first ever deep water seabed auction in California. This auction brought in around $750 million from major developers such as RWE, Equinor, and CIP. This is for floating wind only. Here in Europe, more and more countries adopt policies and plans for floating wind. Such examples are Greece, Portugal, and Norway. Finally, out in the Far East is perhaps where we'll see the first large scale projects being built with South Korea in the lead. Also Taiwan is now preparing for new areas for floating wind, as well as Japan likely conduct, its first larger deep water auctions in 2024. Where is Hexicon in all this? We have a strong presence in most of these key markets.
From a senior team positioning both legs of our business model over in the U.S. to over 10 projects developed in various stages and with various partners across Europe and over to Asia, where operational team of 15 people in Korea is not only in full force developing the MunmuBaram project with Shell, but are also developing additional sites in Korea as well as Taiwan. Just a brief on our own Hexicon, our own business model. To start off, I'd like to view Hexicon as an enabler and an accelerator of the ongoing transition into commercial floating offshore wind. Hexicon is both a project developer and foundation technology provider for deep water offshore wind. We focus on the origination and early stage developments of projects, and we do this in a partnership model with both local and industry partners.
We have our own IP for a dual turbine floating foundation, the TwinWind, which enables an efficient energy production in deep waters and with minimal footprint. These two legs of our business model provide independent revenue streams, but at the same time being very synergetic. Projects provide an opportunity to install the technology. Having our own IP opens markets and project opportunities. In the short term, it's 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.
In our vision for 2025, floating wind is an important part of the energy mix, and Hexicon has capitalized on its early mover position and evolved to a leading player within this sector with a tested technology that is the obvious choice for developers. By 2025, we aim to, for projects, have revenue-generating operations in the three key offshore wind re-regions, being Europe, North America, and Asia. For technology, have gone through the technology roadmap to the point where the TwinWind is verified and tested with all benefits confirmed. On the financial front, for Hexicon AB's entire operations to be EBITDA positive, which is forecasted to be achieved from project investments only. The key building blocks to get us there are to continue to work with best-in-class partners, mature, optimize, and scale the technology, getting it in position for serial fabrication, and to drive portfolio growth.
That's projects. Mainly through pursuing additional and not yet regulated markets where through legwork and bilateral applications rather than big-ticket auctions, can achieve site control and permits. To describe where Hexicon is in this development, I'd like to see Hexicon's journey split in three stages. There is a first stage of mainly investing to grow a meaningful project portfolio. A second stage is when having reached a diversified portfolio, especially in terms of maturity, to then start realizing sizable parts of it and as such, recycle capital. Lastly, the third stage of also having the technology verified. With some key milestones achieved within our project portfolio recently and a diversified portfolio as a whole, we've recently entered the second stage of this journey. On to our technology, the TwinWind, which is essentially a triangular-shaped floating steel structure that carries two large wind turbines.
It is moored through a turret at the front corner, which is a standard component from the oil and gas industry. This is basically just a big bearing. This allows the complete unit to freely rotate with the wind direction around that point. This ensures that the two turbines do not disturb one another. This is the key feature enabling the use of two turbines on the same structure. What two turbines on the same structure entails is that we can install more power in a given area when compared to the competition. This, as such, 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, one, the lowest possible cost of energy, and two, 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. What this video has shown is how the TwinWind weathervanes. From no wind, it shows how when the wind picks up, one of the turbines starts operating to rotate the units towards the wind as quickly as possible for then both turbines to operate fully. This rotation is driven completely by the wind, just like a boated anchor that will align with the wind direction. Now, on to an update of our own operations. Excuse me. To start, here's providing a summary of our expenditures across the year. 2022 was very much an investment-intense growth year. Just over half of our cash outflow went to growing the projects portfolio and around for 40% towards the TwinWind technology.
This is very much a representation of our strategy and dual-legged business model. The money is spent on building value across the projects portfolio and maturing the technology towards deployment offshore. What can also be noted is that only a portion of these amounts are reflected on our balance sheet as of today. This is because we're adopting a rather conservative policy when it comes to how and when we capitalize costs. Out of our project expenditures in 2022, only around 40% have been capitalized. This is very importantly not to say that the remaining 60% of project expenditures isn't driving market value, but that we have clear milestones needed to be achieved before capitalization occurs, typically linked to permitting, which involves very long lead times.
This in itself is important in the context of Hexicon now entering what we've denoted as the second stage, which will include an increase in project investments. Jumping over to project developments, here's looking at the overall portfolio and the change within the projects portfolio during the year. This in total now, our portfolio, is over 9 GW of net holdings. So that is the shares of projects that are in direct Hexicon ownership. The notable difference during the recent period is a rapid development in Italy. Our joint venture, AvenHexicon, has secured 2.5 GW of exclusive rights to seabed and over 7 GW of grid capacity. This is. Excuse me. This is an extremely swift development in a market that is now one of the hotter floating offshore wind markets in Europe.
I look into some specific projects, starting with the MunmuBaram project in South Korea. This is a project that was originated by Hexicon Korea and since 2019, co-developed with Shell. The ambition is to develop and build the world's largest floating wind farm. Hexicon owns 20% of this project, and Shell the remaining 80%. Looking ahead, a next key milestone is the grid connection agreement with local transmission operator KEPCO, which is expected before the summer. Looking backwards slightly, this is a project that have secured its so-called Electricity Business License, a power permit which secures the sea area, have done sea ground investigation works, and a lot more.
What we also managed to achieve very recently during the period is that the project secured a preferred supplier agreement with Danish turbine supplier Vestas for the supply of 84 15-MW turbines. This is quite interesting. This is the first large-scale floating offshore project for Vestas. The turbine that we're talking about here, the V236 15-MW turbine, is an impressive machine to say the least. Just to give you a flavor of it, each blade of this Vestas turbine is 115 meters long, which entails a total swept rotor area equivalent to six soccer fields. The total tip height will be just shy of 260 meters. Here in this picture compared to the Eiffel Tower, or for our locals here in Stockholm, it's around 100 meters taller than Kaknästornet.
Over to Sweden, where we're working together with Mainstream Renewable Power, formerly known as Aker Offshore Wind, and we're doing that through the 50/50 joint venture Freya Offshore. We're developing multiple sites in southern Sweden on both the east and the west coast. Three of our projects are currently in the environmental impact assessment stage following the successful completion of general consultations, the first of these permit applications will be handed into the government within weeks. Now, Sweden's net zero target by 2045 and the electrification of industry along the way drives a near-term need of more electricity. With floating offshore wind, one can place these wind farms further off the coast and away from disturbance. I'll give you a slight example.
This picture down the bottom here is an actual visual representation of our proposed wind farm, Mareld, off the west coast of Sweden. This photo montage will be part of the permit application, and it shows what it will look like using the largest of possible turbines at this future time, as well as it being on a perfectly clear day. The key here is that a large part of the opposition of wind power in general, and in fact, the key reason of permit applications being declined, is a consequence of visual impact of the turbines. With floating wind, one can place these turbines further off the coast, irrespective of water depth and not disturbing the view. Over to Italy. Italy is a rapidly growing market with high ambitions.
As opposed to Sweden, but similar to Korea, Italy offers a process where one, through bilateral applications, can secure water rights early in the process. There's still some definition needed in the overall legislation, but the prerequisites for a large floating wind market are here. Italy has clear offshore wind targets and almost solely deep waters, which means it needs to be mostly floating. Here we're working together with Avapa Energy, a local onshore renewables developer, who is taking the step offshore with us. We've managed to recently secure site control for two large water areas, in total, just over 2.5 GW. We expect additional sites to be secured in the very near term.
Additionally, even more recently, we've secured grid capacity for 7.1 GW, this is for six out of a total of seven offshore sites that we are currently developing. Looking forward, this is one of the projects where we are looking at bringing in additional suitable partners to progress to the next stage, which is the environmental impact assessment stage. Now, onto the TwinHub project. Just as a recap, this project was originally developed for wave power. After years of development, the owners couldn't get that to work and decided to re-permit the site for floating wind and sell. In the spring of 2021, after thorough due diligence, Hexicon bought this site, including permits and the electrical infrastructure already in place. Their aim was clear.
It was to reach the level of maturity and comfort needed to bid into last year's auction for the U.K. tariff scheme named Contracts for Difference. That scheme would, for the first time last year, have an allocated budget for floating wind. There was still a lot of work to do, such as securing a last and final permit for the project, a so-called Marine Licence, and to run quite a lot of technical work and engage with the supply chain, all in order to ultimately determine how low we would be able to bid.
The results from this auction were announced in July last year, and the TwinHub project was the only floating wind project to be awarded funding through the CFD scheme. The scheme works in such a way that the project will receive a fixed amount of revenue for every megawatt hour it produces over 15 years. Our winning bid was at GBP 87.3 per megawatt-hour , and that's a bit complicated denoted in 2012 prices, however indexed. Our estimate today is that it will be around GBP 124 per megawatt- hour at operation start projected in 2025. This project is now in late-stage work, preparing it for construction start, both through engineering and in parallel supply chain engagements. The key supply here are the turbines, where we'll in the TwinHub project, be using two pieces of 8 MW turbines on each floater.
That will make the TwinWind in this project a 16 MW floater, the largest capacity on a single floater in the world. Additionally, we'll during the coming period firm up the funding partnership structure around this project, which I will come back to during the spring. Now, as a final slide, a brief look ahead. We are now shifting gear into revenue mode, and we are in process to realize selected parts of certain projects to recycle capital to continue to grow. This process requires careful consideration on a project per project basis. It's about balancing a certain project's accomplishments with future spend and future milestones. Additionally, we also need to keep in mind the portfolio view to ensure that we over time spread out our divestments and continue to add to the portfolio. We'll continue to focus on the TwinHub projects and push forward towards FID.
We're in process to set the funding partnership of the projects and are engaging heavily with the supply chain. Lastly, most of our efforts remain focused on the project portfolio. It's the growth of the portfolio that across the near term will continue contribute most to the value build of Hexicon. Now that we will see selected divestments take place, it's important to also ensure a steady growth of the portfolio going forward. With that said, thank you all for listening, and I now welcome any questions there may be.
Thank you, Marcus, for that update. Sorry. We received some questions during the presentation. Let's start off with this one. The war in Ukraine has strengthened the trend towards renewable energies. Can Hexicon see an increasing interest in its floating offshore wind projects?
Absolutely. I think both in projects and more in general. What we are seeing is a definite strength or increased interest across the globe. The slight exception perhaps just now would be the Baltic Sea, especially from a military's perspective with a war in, you know, that close. In overall scale of things, yes, absolutely. It's an argument that have come up in addition to climate change, et cetera, is domestic supply. Security of energy supply has come up, you know, really high on the agenda. Quite interesting, a conference, WindEurope conference just a year ago, NATO was actually there as a speaker and really encouraging and promoting offshore wind as an energy source for a few reasons. One is, you know, obviously you have that domestic supply.
It can be built in rather short time, and I think it's also, it's less sensitive to, you know, attacks and something similar where you want to neutralize a energy system. It's, you know, really fascinating to see. I've never seen that before.
On that note, can Hexicon also see an increasing interest from industrial companies, that ask for PPAs or pension funds, insurance companies that want to make long-term green investments?
Absolutely. I think we're both seeing interest in commercial PPAs from industry. Take Sweden as an example. There's plenty of industry that is driving an electrification right now, and everything from green steel to batteries, et cetera. For many of these, it's not a, or not only at least, a debate or discussion around power prices, but it's about power supply as well, where we have a deficit in certain regions. Offshore wind in general has an advantage of being able to be built in a rather short time. You know, you can build a really large scale wind farm in two to three years. Yes, we're definitely seeing that.
I think on top of that, as I alluded to in the presentation as well, is that we're seeing interest from pension funds, you know, institutional investors, et cetera, in general, where the view of floating wind has become, I'm not gonna say mainstream yet, but it's certainly, you know, reduced risk levels. That balance of risk and reward is becoming acceptable from a lot of institutional capital right now.
A question here about the TwinWind technology. you seem to be make big improvements in terms of building your project portfolio. Can you give some insights into which projects are also considering using Hexicon's TwinWind technology?
Yeah, absolutely. The short answer, that requires a little bit longer explanation, but the short answer is that TwinHub project in the U.K. is the only project that is earmarked to our technology. The remaining portfolio is built and grown to achieve maximum value in the shortest amount of time, and for us as a small company, to be able to grow a meaningful and sizable portfolio. To be able to do that, we need investors to come in rather early. The big balance sheets investing in this space are fundamentally technology neutral. If you want investors in early, which we need to grow a broad portfolio, we need to develop it technology neutral. You wanna push out those decisions as late as possible. It gives, you know, as much flexibility as possible, and that also drives value the soonest.
That's our tactic in play. In parallel to that, it's our job and role to mature the technology in our way, mainly through the TwinHub project, as quick as possible, get it installed, verified, and proven for it to be used in our portfolio and others' portfolios. That we're working with in parallel.
Yes. A question here about Italy, where we are very successful. Hexicon has achieved great success in Italy during the last quarter. Could you share some insights on how you were able to pinpoint the key success factors that contributed to your achievements in that market?
Yeah, that's a good question. I think it's probably balance of our own capabilities and skill set and our partners. One of the key early activities is to select the right partner for each market. That's not to say that that initial partner needs to be that biggest balance sheet. Here, we're looking for someone that has, you know, right competence, network, and the motivations to run around, knock on doors, and get things done. This is a market where you can secure first milestones, you know, seabed rights, et cetera, through bilateral applications. It's not, you know, the need for the big balance sheets are not from the very outset. It costs a lot more money as time goes on. To secure these first permits, we need the right partner, not the biggest balance sheet.
I think it's a combination of that and, you know, deploying our core skill set. Our core skill set when it comes to project developments are the early stage. You select market, you select the right area in the market. Within that area, you package that, you optimize that, you know, wind farm design, etc., and that package that ultimately as an investable case. A combination of our partner and our own, I think, early-stage skills.
Great. That's it from us for today, so thank you so much.
Thank you very much, everyone.