SK Construction Selected as Priority Negotiation Partner for Korea's First RE100 Demonstration Project

[Asia Economy Reporter Chunhee Lee] SK Engineering & Construction is taking the lead in promoting the RE100 (Renewable Energy 100%) project, which supplies energy required for corporate production activities entirely from renewable sources.

The Changwon SG Energy Consortium, led by SK Engineering & Construction, announced on the 20th that it has been selected as the preferred negotiation partner for the energy self-sufficient infrastructure construction project promoted by the Gyeongnam Changwon Smart Industrial Complex Project Group.

The Gyeongnam Changwon Smart Industrial Complex Project Group has been promoting this project to provide electricity produced 100% from renewable energy to small and medium-sized enterprises (SMEs) facing export difficulties due to increasing trade barriers caused by strengthened eco-friendly policies worldwide, thereby creating new growth opportunities.

This project aims to realize practical RE100 by 2022 by integrating cutting-edge renewable energy technologies such as hydrogen fuel cells, solar power, energy storage systems (ESS), and V2G (Vehicle to Grid), including policy improvements necessary for this purpose.

RE100 is a campaign where energy-consuming companies actively respond to climate change by using 100% renewable energy for their energy consumption. Apple has pledged that all its product component suppliers comply with RE100, and BMW has also requested Samsung SDI and LG Chem, which supply batteries for its electric vehicles, to participate in the RE100 campaign.

For this project, SK Engineering & Construction formed a consortium with SK C&C, SK D&D, Gridwiz, Nuritelecom, Korea Electric Research Institute, and Korea Testing Laboratory. All members are recognized for having top-level technology and experience in the electricity industry.

SK Engineering & Construction plans to supply the first pure hydrogen fuel cells in cooperation with Bloom Energy of the United States. The parts procurement and assembly of these products will be handled by BloomSK Fuel Cell, a joint venture between the two companies. Additionally, SK Engineering & Construction plans to build SOEC (Solid Oxide Electrolyser Cell) water electrolysis facilities separately from the consortium to produce green hydrogen. They will also conduct workforce training projects in the energy sector aligned with this project.

Among other consortium participants, SK D&D will handle renewable energy such as solar power and energy storage systems, Gridwiz will manage V2G to provide electricity supply and services, Nuritelecom will build the IT system that will serve as the basis for power purchase agreements, Korea Electric Research Institute will focus on electricity demand efficiency and policy development, and Korea Testing Laboratory will be responsible for the RE100 certification system.

If the Changwon SG Energy Consortium successfully completes the demonstration by 2022, it will transition into an SPC (Special Purpose Company) under a public-private partnership and become the electricity supplier for the Changwon area for the next 20 years. SK Engineering & Construction plans to expand the project to seven other national industrial complexes besides the Changwon Industrial Complex.

A representative of the Changwon SG Energy Consortium stated, "Through this project, we expect to create approximately 1,000 jobs over the next 20 years and secure additional growth opportunities such as exporting renewable electricity projects to the U.S. and Southeast Asia. In particular, we aim to help domestic SMEs enter new markets through RE100."