[Let's Run Again K Construction] First Non-Financial Company to Achieve 'Coal Phase-Out'... Paving the Future of Eco-Friendly Energy

Samsung C&T Opens Market for Energy Transformation
Building Value Chains in Solar Power, Small Modular Reactors, and Green Hydrogen
Equity Investment in US Companies and Entry into Middle East as 'Team Korea'

Samsung C&T employees are pledging to ensure thorough management of the eco-friendly energy facility in front of the Mangilao solar power plant in Guam, which was successfully completed last June. / Photo by Samsung C&T

[Asia Economy Reporter Noh Kyung-jo] The illumination of the Eiffel Tower in Paris, France, which used to shine until 1 a.m., has been turned off before midnight since the end of September this year. The prolonged Russia-Ukraine war has restricted natural gas supplies to Europe, intensifying the energy crisis. Already, 195 parties to the United Nations Framework Convention on Climate Change worldwide are promoting a transition to renewable (eco-friendly) energy under the 2015 Paris Agreement, and this transition is accelerating.

The energy sector is no exception in this era of 'transformation.' Samsung C&T’s Construction Division is at the forefront of this change. In October 2020, Samsung C&T became the first non-financial company in Korea to declare 'coal phase-out' and has been actively entering renewable energy-related businesses. Judging that securing market leadership during this industrial transformation is paramount, Samsung C&T is pioneering future energy business channels such as solar power, small modular reactors (SMR), and green hydrogen.

Collaborating with US Companies to Build Solar and SMR Value Chains

Solar power is an infinite resource capable of eco-friendly generation, and the market related to decarbonization is expanding. Samsung C&T entered the overseas solar power generation market through the 'Guam Mangilao Solar Project.' This project involves installing a 60 MW solar power facility, a 32 MWh energy storage system, and transmission lines on approximately 1.2 km² of land along the eastern Pacific coast of Guam. Samsung C&T explained that through this completion, they have gained experience in successfully executing all phases of solar power generation design, procurement, and construction (EPC), beyond merely installing solar panel modules.

In particular, due to natural constraints, solar power generation requires energy storage systems (ESS) for stable energy supply. In April this year, Samsung C&T decided on equity investment and business cooperation with US-based Powin, which handles everything from manufacturing to development and operation of battery-based energy storage systems. Leveraging their abundant experience and capabilities, the two companies plan to strengthen bidding competitiveness in the global market and jointly participate in upcoming renewable energy projects in the Middle East and Southeast Asia.

Aerial view of a small modular reactor (SMR) by News Scale Power in the United States / Photo by Samsung C&T Corporation

Samsung C&T also invested a total of $70 million in NuScale Power, a US company leading the SMR business. This includes $20 million last year and $50 million this year. They evaluated that this investment has laid the groundwork to promote overseas business with key partners forming the SMR market value chain.

SMRs not only improve safety compared to conventional nuclear power plants but also emit almost no carbon. They complement the natural condition limitations and intermittency of renewable power generation by providing stable electricity through nuclear power. Samsung C&T expects related businesses to become active primarily in markets receptive to nuclear power. NuScale Power’s SMR is regarded as the closest to commercialization, having been the first to obtain design certification from the US Nuclear Regulatory Commission (NRC).

Samsung C&T and NuScale Power are currently reviewing the SMR project led by US power utility UAMPS in Idaho, targeting commercial operation in 2029. They plan to share accumulated technologies and capabilities, from pre-construction planning to dispatching technical personnel. Additionally, Samsung C&T will cooperate as a strategic partner in SMR projects in Eastern Europe, including a project jointly promoted by the Romanian government and NuScale Power. Furthermore, they are conducting research and practical application of hydrogen production using high-temperature steam.

'Team Korea' Lays Foundation for Green Hydrogen Production in the Middle East

On May 31, representatives from Korea Electric Power Corporation, Samsung C&T, West Power, and Petrolinkemi are taking a commemorative photo after signing a joint development agreement for the UAE Kizad Green Hydrogen and Ammonia project in Abu Dhabi, United Arab Emirates (UAE). / Photo by Korea Electric Power Corporation

Samsung C&T is also focusing on the green hydrogen infrastructure market as a pillar of future growth. Green hydrogen refers to hydrogen produced without any carbon emissions during the production process. Based on experience in combined cycle power plants and liquefied natural gas (LNG) storage tank construction, design technology, and core customer networks, Samsung C&T is preparing for the entire value chain from production to utilization.

As a first step, they are expanding cooperation with countries such as Saudi Arabia that aim to develop green hydrogen as a key energy export resource. In November last year, Samsung C&T signed a comprehensive business agreement with the Saudi Ministry of Investment (MISA), pledging active support for local development projects and infrastructure expansion construction. In January this year, Samsung C&T, POSCO, and the Saudi Public Investment Fund (PIF) signed a tripartite memorandum of understanding (MOU), and in November, an MOU including Korea Electric Power Corporation, Korea National Oil Corporation, and Korea Southern Power was signed to promote demonstration projects for green hydrogen production and utilization.

They are also laying groundwork in the United Arab Emirates (UAE). The starting point was the UAE Kizad Green Hydrogen-Ammonia Joint Development Agreement (JDA) signed in May with Korea Electric Power Corporation, Western Power, and local partner Petrolinkemi. This project involves constructing a green ammonia production plant with an annual capacity of 200,000 tons in the Kizad Industrial Zone in Abu Dhabi, divided into two phases. Through this agreement, Samsung C&T plans to build a green ammonia production facility with a capacity of 35,000 tons and later expand to the second phase.

Samsung C&T is entering the green hydrogen business in the form of 'Team Korea' alongside Korea Electric Power Corporation and others. They believe that acting as Team Korea, which consolidates Korea’s capabilities, will create synergy in building the industrial ecosystem. A Samsung C&T official said, "We will concretize development projects for green hydrogen production infrastructure in the Middle East and Australia regions. Utilizing the capabilities of our subsidiary Whessoe, a global specialist in energy storage facility design, we will accelerate the development of liquefied hydrogen storage facilities and regasification technology."