Hanwha Energy Enters LNG Power Generation Business... Supply Contract with French TotalEnergies

Signed LNG Supply Contract for 600,000 Tons Annually Over 15 Years

Hanwha Energy signed a long-term liquefied natural gas (LNG) supply contract with TotalEnergies on the 24th at Daegu EXCO. Jeong In-seop, CEO of Hanwha Energy, and Thomas Morris, LNG representative of TotalEnergies, are taking a commemorative photo. (Photo by Hanwha Energy)

[Asia Economy Reporter Moon Chaeseok] Hanwha Energy is entering the liquefied natural gas (LNG) power generation business in partnership with France's TotalEnergies.

On the 24th, Hanwha Energy announced that it signed a long-term contract with TotalEnergies at Daegu EXCO to directly import 600,000 tons of LNG annually for 15 years. Based on its accumulated business capabilities in renewable energy sectors such as combined heat and power generation and solar power, Hanwha Energy plans to actively develop its LNG business.

The LNG imported under this contract will be supplied to Tongyeong Eco Power, scheduled to begin operations in 2024. Tongyeong Eco Power is a 1GW-class LNG combined cycle power plant jointly promoted by Hanwha Energy and HDC Co., Ltd., currently under construction in Tongyeong, Gyeongnam.

Hanwha Energy has selected the LNG business as a new business three years ago to reduce carbon emissions from power plants and to complement the variability issues of renewable energy. Domestically, it is prioritizing a project to convert the fuel of currently operating combined heat and power plants to LNG to reduce carbon emissions. Gradually, it aims to achieve carbon-free power generation by utilizing hydrogen co-firing technology and carbon capture and storage (CCS) technology.

Jung Inseop, CEO of Hanwha Energy, said, "In a situation where volatility in the LNG market has increased more than ever due to unstable international conditions, signing a long-term contract with TotalEnergies is significant in securing business stability," adding, "In the long term, we plan to build a business portfolio with solar power, energy storage systems (ESS), and LNG."