Breaking into the 200 Trillion Overseas Market with Korean-Style Combined Gas Turbines

Seobu Power, Doosan Heavy Industries, and KIND Begin Year-End Project Orders in North America and Beyond
Doosan Heavy Industries Conducts Safety Test for 270MW H-Class Gas Turbine for Power Generation
Demonstration After Completion of Gimpo Combined Heat and Power Plant in June 2023
Government to "Promptly Establish Measures to Strengthen Gas Turbine Localization"

Power generation gas turbine under development by Doosan Heavy Industries & Construction. (Photo by Doosan Heavy Industries & Construction)

[Asia Economy Reporter Moon Chaeseok] Korea Western Power and Doosan Heavy Industries & Construction are jointly entering the overseas combined cycle gas turbine market, which is expected to grow to a scale of 200 trillion won.

Korea Western Power, Doosan Heavy Industries & Construction, and the Korea Infrastructure Development Corporation for Overseas Development (KIND) announced on the 23rd that they signed a "Korean-style Combined Cycle Gas Turbine Overseas Market Joint Entry Agreement" on the 22nd.

◆'Team Korea' Sets Sail to Target the 200 Trillion Won Gas Turbine Market... North America Orders to Begin by Year-End

Sung Yun-mo, Minister of Trade, Industry and Energy, is explaining the main contents of the 'Green New Deal' at the Government Complex Sejong on July 16. On the left is Cho Myung-rae, Minister of Environment. (Photo by Yonhap News)

The agreement is part of the "Korean-style Combined Cycle Gas Turbine Overseas Business Roadmap" promoted by Korea Western Power and Doosan Heavy Industries & Construction.

As the global transition to eco-friendly energy accelerates, the gas turbine market required for liquefied natural gas (LNG) power generation is expected to grow from 97 trillion won in 2018 to nearly double, about 200 trillion won by around 2035.

Doosan Heavy Industries & Construction will apply the gas turbine developed with proprietary technology to the Gimpo Combined Heat and Power Plant, scheduled for completion in June 2023, and conduct demonstration tests. Through this, the completed Korean-style combined cycle gas turbine standard model will be exported to overseas markets.

Last year, Doosan Heavy Industries & Construction developed a 270MW H-class gas turbine for power generation with its own technology, becoming the fifth in the world and the first in Korea to do so.

By early next year, they plan to secure equipment stability through performance tests such as overspeed and reliability tests, and combustor safety tests.

To establish a foothold for overseas market entry, the three organizations will form a task force (TF) called "Team Korea" next month and begin full-scale business orders targeting regions such as North America from the end of the year.

◆Doosan Gas Turbine to be Demonstrated after Completion of Gimpo Combined Heat and Power Plant in June 2023

President Moon Jae-in visited Doosan Heavy Industries in Changwon, Gyeongnam, a Green New Deal site, on the afternoon of the 17th and signed a gas turbine blade at the gas turbine high-temperature parts factory. (Photo by Yonhap News)

According to the agreement, Doosan Heavy Industries & Construction will be responsible for gas turbine development and manufacturing technology support, Korea Western Power will handle gas turbine operation and maintenance, and KIND will provide financial support.

Kim Byung-sook, President of Korea Western Power, said, "Joint entry into overseas markets is intended to revitalize the domestic power plant business, which is facing a crisis due to the economic downturn caused by the spread of COVID-19."

Jung Yeon-in, President of Doosan Heavy Industries & Construction, emphasized, "This agreement has laid the groundwork to advance the first export of Korean gas turbines. We will actively foster the gas turbine business so that it can become a new growth engine for us and related domestic partner companies."

Heo Kyung-gu, President of KIND, stated, "Overseas business going forward requires global financial technology and risk hedging techniques rather than past order competitions. We plan to support the agreement companies in various ways to create synergy."

Korea Western Power is currently developing the KEC Combined Cycle Power Plant project located in Connecticut, USA, and is awaiting the preliminary feasibility study results from the Korea Development Institute (KDI).

◆Government to Quickly Establish Measures to Strengthen Gas Turbine Localization

Sung Yun-mo, Minister of Trade, Industry and Energy. (Photo by Yonhap News)

The government announced that it will promptly establish industrial strategies such as LNG gas turbine localization.

Earlier on the 17th, Sung Yun-mo, Minister of Trade, Industry and Energy, visited the Doosan Heavy Industries & Construction gas turbine factory in Seongsan-gu, Changwon, and said, "Securing competitiveness in the gas turbine industry is an urgent task that cannot be delayed, so we plan to prepare 'Measures to Strengthen Competitiveness in the Gas Turbine Industry' as soon as possible."

In February, the Ministry of Trade, Industry and Energy held the launch ceremony of the "Korean Standard Gas Combined Cycle Development Commercialization Promotion Group," where the ministry, Doosan Heavy Industries & Construction, Sungil Turbine, mid-sized and small parts companies, five power generation companies, and the Korea Energy Technology Evaluation Institute jointly prepared strengthening measures to be reflected in the 9th Basic Plan for Electricity Supply and Demand (9th Electricity Plan).