[Let's Run Again K Construction] Constructing the World's Largest Tidal Power Plant... Accelerating Competitiveness in Renewable Energy

Sihwa Tidal Power Plant Evaluated as a Successful Case of Renewable Energy
Securing 'New Growth Engines' Such as Offshore Wind Power and Hydrogen Fuel Cell Power Generation

[Asia Economy Reporter Kwak Minjae] It can produce up to 254,000 kW of electricity at once, which is 14,000 kW larger in production capacity than the Lens power plant in France. Tidal power generation is evaluated as a clean energy source with lower generation costs, larger production scale, and minimal impact from weather conditions compared to solar or wind power. In particular, it is known that circulating the water of Sihwa Lake with the external sea also provides environmental regeneration effects by improving water quality.

A view of the Sihwa Lake Tidal Power Plant site completed by Daewoo E&C.
[Photo by Daewoo E&C]

Daewoo E&C is increasing its investment in the eco-friendly renewable energy sector based on its own technological competitiveness and construction experience. This is because the international community's movement toward sustainable energy use is rapidly accelerating. As of March last year, the global corporate and institutional membership rate for RE100 increased by 473% compared to 2015. RE100 is a global campaign to procure 100% of energy used from renewable sources such as solar power by 2050.

◆On the Verge of Winning a 1.7 Trillion KRW Offshore Wind Power Project＝ Daewoo E&C is on the verge of winning the ‘Yeonggwang-Nakwol Offshore Wind Power Project’ worth 1.7 trillion KRW based on its continuously developed business capabilities. In December last year, Daewoo E&C signed a memorandum of understanding (MOU) to jointly promote the overall work of the ‘Gulupdo Offshore Wind Power Project’ with C&I Leisure Industry and SK D&D. This project involves creating a wind power complex with a capacity of about 240 MW off the coast near Gulupdo, Ongjin-gun, Incheon City, with a total project cost estimated at about 1.3 trillion KRW. The SPC will construct offshore wind power facilities and grid connection facilities and operate the project for 20 years, aiming to start construction in 2025 and commence commercial operation in 2028.

A view of the Yeongwol Wind Power Unit 10 site under construction by Daewoo E&C. [Photo by Daewoo E&C]

Daewoo E&C has secured technological competitiveness through national projects. Since 2011, through national projects, it has developed a fixed-bottom support system capable of safely and economically supporting wind turbines and towers of 3 MW or more in offshore waters within a depth of 40 meters, which was applied to the Southwest Sea offshore wind power demonstration complex. It also possesses design and construction technology for offshore wind power by developing a new type of offshore wind concrete suction bucket support structure, which has advantages such as better deformation and fatigue resistance compared to steel, strong corrosion resistance, and faster installation. Furthermore, it plans to expand its wind power business step-by-step through the mid- to long-term goal of developing design technology for 15 MW-class offshore wind floating bodies.

Daewoo E&C is focusing on its own research and development (R&D) of blue and green hydrogen production technologies to proactively respond to the hydrogen industry. The hydrogen industry is expected to expand in the future through the government's basic plan for hydrogen economy implementation. The company holds numerous patents related to hydrogen, carbon capture, utilization, and storage (CCUS). Based on this, it is striving to secure independent technology and discover business models.

Daewoo E&C installing the final blade of the Yeongwol Wind Power Unit 10 in early July.
[Photo by Daewoo E&C]

Expanding its network in the energy sector, Daewoo E&C is also promoting cooperation and market entry. In May, Daewoo E&C signed an MOU for investment in hydrogen fuel cell power generation and smart farm linkage projects with Andong City, MDM Asset Management, and KT. In April last year, it signed an agreement with Chungbuk Development Corporation in Eumseong-gun, Chungbuk Province, for the ‘Chungbuk Hydrogen Fuel Cell Convergence Power Project.’ This project involves constructing a hydrogen fuel cell power plant with an electricity production capacity of 200 MW per hour. The total project cost is about 1.5 trillion KRW, making it the largest among currently operating fuel cell power plants. Once the plant is fully operational, it is expected to produce about 1,700 GWh of electricity annually, enough to supply approximately 500,000 households for one year.

◆First Profits from Carbon Emission Rights... Signal of Full-Scale Entry into the Energy Market＝ Daewoo E&C made its first profits from carbon emission rights sales last year, marking its full-scale entry into the eco-friendly energy market. Previously, Daewoo E&C jointly promoted the ‘Pakistan Patrind Hydropower Plant’ with Korea Water Resources Corporation, investing a 20% stake and handling construction, completing it in November 2017. Over the following two years, it sold carbon emission rights issued for the plant for a total of 12.6 billion KRW last year, earning 2.52 billion KRW, which corresponds to 20% of the total. Considering the power generation of the Patrind Hydropower Plant, an annual carbon reduction effect of about 270,000 tons is expected in the future.

In addition, Daewoo E&C has entered the solar power generation sector by participating in Jeju Island’s ‘Mandarin Orange Orchard Solar Electric Farming’ project. This project produces renewable energy through a win-win partnership among Jeju Province, mandarin orange farmers, and solar power operators. Jeju Province is promoting the ‘Carbon Free Island 2030’ initiative by guaranteeing stable income from power generation on mandarin orange farm sites that are struggling due to aging farmers and other difficulties.