[K-Construction, A New Leap] Samsung C&T Construction Division
Executing Projects in Qatar, Guam, Australia
Active Investment and Orders in Green Hydrogen, SMR
Alliances with Overseas Government Investment Agencies and Global Companies
Jumping as a Comprehensive Energy Solutions Provider
The recent keyword for domestic construction companies is ‘sustainable growth.’ As the domestic real estate market contracts due to high interest rates, rising raw material prices, and labor costs, sustainable growth through diversification of business portfolios has become a survival requirement rather than a choice. Construction companies are targeting global construction sites and new businesses. Based on proven construction capabilities, they are exploring new opportunities across overseas sites. They are also expanding new businesses beyond the traditional business structure focused on housing orders and construction. These efforts are yielding results. According to the Overseas Construction Association, domestic construction companies have secured 479 contracts worth a total of $28.52587 billion overseas from the beginning of this year through October. Converted to Korean won, this amounts to approximately 39.9191 trillion won, an 11.2% increase compared to a year ago. In addition, efforts are underway to secure technology to create more comfortable future living spaces. Research and development (R&D) to integrate smart technologies into services for residents after apartment construction and completion is in full swing. Asia Economy introduces the achievements and various efforts of domestic construction companies preparing for a new leap forward despite the economic downturn through ‘K Construction, A New Leap.’ [Editor’s note]
Samsung C&T Construction Division is rapidly restructuring its business centered on eco-friendly energy. It is growing its business with speed based on active investments, orders, and global alliances. In particular, it is enhancing its capabilities by securing orders related to eco-friendly energy such as solar power, clean hydrogen, and small modular reactors (SMR) at various overseas locations. Through this, it has set a goal to establish itself as a ‘total energy solution provider.’ This is an effort to discover sustainable revenue sources beyond the traditional business structure focused on housing orders and simple construction.
Executing Numerous Solar Power Projects... Expanding Business to Green Hydrogen and SMR to Materialize Plans
Samsung C&T employees are taking a commemorative photo after completing the Mangilao solar power facility in Guam in 2022. This project is Samsung C&T's first to handle not only the simple installation of solar panel modules but also engineering, procurement, and construction (EPC), as well as operation.
Samsung C&T is currently carrying out eco-friendly energy projects overseas, including in Qatar, Guam, and Australia. In particular, it is conducting the largest solar power generation project in Qatar. The site is equivalent to the size of 1,400 soccer fields, with a generation capacity of 875 MW. Once completed, it will be able to supply electricity to approximately 1.5 million households. This is a national project supplying power to local energy infrastructure and the national power grid.
The ‘Guam Mangilao Solar Power Project,’ completed in 2022, laid the foundation for this business. Through the Mangilao project, Samsung C&T was able to build capabilities across all stages?from simple installation of solar panel modules to engineering, procurement, and construction (EPC) and operation.
This month, Samsung C&T secured an additional project by forming a consortium with Korea Electric Power Corporation and Korea East-West Power to win a solar power project linked with an energy storage system (ESS) in Guam. Samsung C&T will be fully responsible for the construction of a 132 MW solar power facility and an 84 MW BESS power plant by 2027. A Samsung C&T official said, “By successfully executing solar power projects consecutively, we are securing additional opportunities. We will continue to expand our network and monitor solar power market conditions to generate concrete results.”
The eco-friendly energy business, which started with solar power, is expanding into the energy mix sector including green hydrogen and ammonia. Green hydrogen and ammonia are considered core to energy transition among eco-friendly energy sources.
Signing Ceremony of Green Hydrogen Project Development Agreement and Land Use Agreement Held in Muscat, Oman
Samsung C&T has begun actively creating a market by participating in a green hydrogen project commissioned by the Oman government. The Oman government has announced three green hydrogen zones suitable for eco-friendly energy production, aiming to become the world’s largest green hydrogen hub. Samsung C&T formed a consortium with global companies including Japan’s Marubeni and was awarded the exclusive rights to the second phase of the Salalah region’s 1 million ton green hydrogen and ammonia project last December without competitive bidding.
It is also actively cooperating with overseas government investment institutions and global leading companies. In the Middle East, including Saudi Arabia and the United Arab Emirates (UAE), it has established direct networks with government investment institutions. Through this, it is conducting demonstration projects for green hydrogen production and utilization with the Saudi Ministry of Investment (MISA) and the Public Investment Fund (PIF). In Australia, which is rich in renewable energy resources, it is promoting specific development projects to create renewable energy complexes such as solar and wind power and to build green hydrogen production facilities in cooperation with local global energy specialists.
Domestically, it plans to accelerate the green hydrogen production demonstration project in Gimcheon, Gyeongbuk. Electrolyzer facilities (which produce hydrogen by splitting water using electricity) will be completed by next month, and actual production will begin in January next year.
Samsung C&T is also striving to achieve results in SMR. It invested $70 million (approximately 97 billion won) in NuScale Power, the world’s number one SMR company based in the U.S., and has started personnel exchanges and technology cooperation. Cooperation to jointly promote projects in global markets such as Eastern Europe and Asia is also being concretized. Actual results are also emerging. Together with three U.S. companies?NuScale, Fluor, and Sargent & Lundy?it secured the front-end engineering design (FEED) for a project to replace a thermal power plant in the Doicesti region of Romania with SMR. The Romanian SMR construction project is regarded as the fastest to be executed among global SMR projects. A Samsung C&T official said, “This project is a very important first milestone for the SMR market. It will serve as a foothold for us to expand into the European market.”
Business Alliances with Global Companies in the U.S. and Japan... The ‘Key’ to Building an Eco-Friendly Energy Value Chain
Samsung C&T’s ability to expand its eco-friendly energy business has been greatly supported by business alliances with global companies. Samsung C&T’s globally recognized construction capabilities combined with global companies’ eco-friendly business expertise are enabling rapid acquisition of value chain technologies from business development, production, transportation, storage, to operation.
In developing technology for liquefied hydrogen storage and regasification, Samsung C&T has combined its capabilities with those of its subsidiary Whessoe, a world-class energy storage facility design company. As a result, last October, it obtained design certification from the international certification body DNV for the world’s largest capacity liquefied hydrogen storage tank. Liquefied hydrogen is hydrogen gas cooled to cryogenic temperatures to liquefy it. The certified liquefied hydrogen storage tank has a capacity of about 2,800 tons, enough to refuel more than 500,000 hydrogen vehicles at once.
Samsung C&T is also building capabilities for stable transportation and storage of green hydrogen through a partnership with Japan’s Chiyoda Corporation. Together, they are conducting a demonstration project to transport hydrogen in large quantities by dissolving it in organic solvents for liquefied storage. In addition, Samsung C&T is establishing business alliances with numerous global specialized companies to secure electrolyzer technology and is promoting infrastructure construction projects with major domestic companies.
A Samsung C&T official said, “While maintaining a business policy focused on profitability by enhancing competitiveness in strategic markets and products, we plan to firmly establish sustainable growth by adding new businesses. We will also lay a solid growth foundation by generating concrete results in areas such as eco-friendly energy, where we have laid the groundwork for market expansion so far.”
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