Samsung C&T Finds Sustainable Growth in 'Eco-friendly Energy' Business

[K-Construction, New Challenge]
Establishment of Energy Solutions Division, Increased Investment
Full-Scale Green Hydrogen Business in Middle East and Asia

Amid the growing focus on carbon neutrality, the construction industry is also experiencing a wave of renewable energy and, further, eco-friendly energy business initiatives. Notably, Samsung C&T's swift pace of business restructuring stands out. In July this year, Samsung C&T established the Energy Solutions Division at the vice president level and is actively investing in eco-friendly energy businesses to build its capabilities. Through business development based on global alliances and rapid execution, it is securing its position as a 'Green Energy First Mover.' Combining globally recognized construction expertise with the creation of green energy solutions, the company aims to firmly establish itself as a 'Total Energy Solution Provider.'

◆Beyond Solar Power... Full-Scale Green Hydrogen Projects in Saudi Arabia and Australia

Expected Perspective View of Qatar Solar Power Project / Photo by Samsung C&T Corporation

Samsung C&T has solidified its position as a leading company by executing numerous projects in the renewable energy sector, including solar power. Building on this, it is expanding the scope of next-generation energy resources to include green hydrogen and ammonia.

The company's entry into the overseas solar power market began with the 'Guam Mangilao Solar Project.' This project involves installing a 60MW solar power facility, a 32MWh energy storage system, and transmission lines on approximately 1.2 square kilometers along Guam's eastern Pacific coast. By successfully completing this project last year, Samsung C&T secured capabilities across all stages?from design, procurement, and construction (EPC) to operation?beyond merely installing solar panel modules.

Currently, Samsung C&T is executing the largest solar power project in Qatar. Commissioned by QatarEnergy, this project covers an area equivalent to 1,400 soccer fields with a generation capacity of 875MW. It can supply electricity to approximately 1.5 million households and, upon completion, will provide power to Qatar's energy facilities and the national grid. By successfully carrying out consecutive projects, Samsung C&T has further advanced as a global leader in renewable energy.

Additionally, leveraging its extensive capabilities and network in renewable energy, Samsung C&T is emerging as a global leading player in green hydrogen and ammonia?fields expected to be central to the energy transition.

First, in the Middle East, including Saudi Arabia and the United Arab Emirates (UAE), Samsung C&T is directly building networks with government investment agencies and collaborating on green ammonia business development. Specifically, it is accelerating demonstration projects for green hydrogen production and utilization with Saudi Arabia’s Ministry of Investment (MISA) and the Public Investment Fund (PIF). In the UAE, it is advancing a green ammonia production plant project with an annual capacity of 200,000 tons. In Australia, rich in renewable energy resources, Samsung C&T is partnering with global energy specialists to develop local renewable complexes such as solar and wind farms and is focusing on concrete development projects to establish green hydrogen production facilities.

◆Building an Eco-Friendly Energy Value Chain through Global Business Alliances

LNG tanks at the Vietnam Thi Vai LNG terminal site / Photo by Samsung C&T Corporation

Recently, Samsung C&T obtained design certification from DNV (Det Norske Veritas), an international energy sector certification body, for the world's largest liquefied hydrogen storage tank. Liquefied hydrogen is hydrogen gas cooled to cryogenic temperatures to liquefy it, and the certified storage tank has a capacity of 40,000 cubic meters. This capacity allows storage of approximately 2,800 tons of liquefied hydrogen at ultra-low temperatures, enough to refuel over 500,000 hydrogen vehicles at once.

Due to the nature of liquid hydrogen at minus 252.8 degrees Celsius, liquefied hydrogen storage tanks require highly advanced design and construction capabilities to maintain cryogenic conditions. Samsung C&T emphasized that this achievement results from combining its experience in numerous global renewable energy projects such as solar and wind power with the expertise of its subsidiary, Whessoe, a world-renowned energy storage facility design company.

In March this year, Samsung C&T established a cooperative relationship with Japan’s Chiyoda Corporation to ensure stable transportation and storage of green hydrogen. Chiyoda is conducting a demonstration project that dissolves hydrogen in organic solvents for liquefied storage, enabling large-scale hydrogen transport. Alongside this, Samsung C&T has formed business alliances with multiple global specialized companies to secure water electrolysis technology for hydrogen production. It is also collaborating on infrastructure projects to supply green hydrogen and ammonia with major domestic companies.

Amid alliances with global companies, Samsung C&T’s overseas business is contributing to strong performance. With a cumulative operating profit of 899 billion KRW in the third quarter of this year, Samsung C&T is the only company in the construction industry expected to achieve operating profits exceeding one trillion KRW. Notably, overseas orders from January to September this year reached 7.57 trillion KRW, a 156.3% increase compared to 4.842 trillion KRW in the same period last year. This contrasts with domestic orders, which declined from 8.673 trillion KRW last year to 7.989 trillion KRW this year during the same period.

Samsung C&T’s efforts to expand its eco-friendly energy business have culminated in the country’s first green hydrogen production facility using only renewable energy. On the 30th of last month, Samsung C&T announced plans to build a facility in Gimcheon, Gyeongbuk Province, that produces green hydrogen using off-grid solar power. Off-grid refers to producing energy independently without receiving electricity, gas, or other energy from external sources. Samsung C&T expects this to lay the foundation for future energy self-sufficient cities and large-scale green hydrogen production overseas. The company stated it will continue to lead sustainable energy transition by creating green energy solutions.