The Largest Voltage-Source HVDC Transformer Plant in Korea
Development of Korea's First 200 MW Voltage-Source HVDC
Hyosung is investing 330 billion KRW to establish a production base for voltage-source high-voltage direct current (HVDC) transformers, a core technology for future power grids.
On July 30, Hyosung Heavy Industries announced that it held a groundbreaking ceremony for its new HVDC transformer plant at its Changwon factory in Gyeongnam. The event was attended by more than 100 key figures, including Hyosung Vice Chairman Lee Sangwoon, Democratic Party lawmaker Heo Seongmu, People Power Party lawmakers Kim Jongyang and Choi Hyeongdu, and Lee Hohyeon, the Second Vice Minister of Trade, Industry and Energy.
The Hyosung Heavy Industries HVDC transformer plant will be built on a site of approximately 29,600 square meters within the Changwon factory and is scheduled for completion in July 2027. Hyosung Heavy Industries plans to invest a total of 330 billion KRW in the HVDC business over the next two years, including about 254 billion KRW for the new plant, expansion of production facilities for the core HVDC equipment known as the "large-capacity voltage-source converter system," and the implementation of research and development (R&D) projects.
At the groundbreaking ceremony, Vice Chairman Lee Sangwoon stated, "Voltage-source HVDC technology, which has so far been dominated by overseas companies, must be localized to secure competitiveness in the future power transmission market and foster it as an export industry. As a leading energy solutions provider in Korea, Hyosung Heavy Industries has the experience and capabilities to spearhead the localization of HVDC technology and elevate the status of 'K-Electric Power'."
The new plant will be the largest dedicated voltage-source HVDC transformer facility in Korea. Last year, Hyosung Heavy Industries succeeded in developing the country's first 200 MW-class voltage-source HVDC technology.
HVDC is a technology that enables power transmission over long distances with minimal loss compared to high-voltage alternating current (HVAC). In particular, the voltage-source HVDC technology owned by Hyosung can be linked to renewable energy generation, which has drawn increased attention recently.
Currently, only a few overseas power equipment companies possess HVDC technology, allowing them to almost monopolize the global market. Korea has also relied on foreign technology in this field, but since 2017, Hyosung Heavy Industries has invested 100 billion KRW to develop HVDC and succeeded in localizing the technology with its own independent innovation last year.
Hyosung Heavy Industries plans to continue localizing HVDC technology by developing a 2 GW large-capacity voltage-source HVDC, aiming to break the dominance of a few overseas companies in the HVDC market.
Expected to Play a Central Role in the West Coast Energy Expressway
Hyosung Heavy Industries' HVDC is expected to play a pivotal role in the "West Coast Energy Expressway" project being promoted by the Lee Jaemyung administration.
Recently, the new government set a goal to establish the "West Coast Energy Expressway" by 2030, connecting renewable energy complexes in the Honam region with the Seoul metropolitan area through the power grid.
Voltage-source HVDC is an essential technology for the "West Coast Energy Expressway" project. It enables real-time bidirectional power control and is advantageous for grid stabilization, making it possible to connect renewable energy sources with irregular output due to weather conditions.
If HVDC incorporating domestic technology is used, it will facilitate power grid maintenance and rapid response in case of failure. As the only domestic company possessing voltage-source HVDC technology, Hyosung Heavy Industries is expected to play a crucial role in the new government's "West Coast Energy Expressway" project.
Expanding into the global market, Hyosung Heavy Industries' total transformer production capacity at the Changwon plant is expected to increase by about 20% compared to current levels when the new HVDC plant begins full operation in 2028. This will enable the company to meet both the surging demand in the existing global AC power market and the rapidly growing DC power market.
Additionally, Hyosung Heavy Industries is expected to become the only domestic provider of total HVDC solutions, capable of everything from system design to the production of key equipment such as converters, controllers, and transformers using its own proprietary technology.
Meanwhile, HVDC technology is also attracting global attention in the power market. The worldwide market continues to expand, centered on Europe, where renewable energy generation and cross-border grid connections (super grids) are active, and the United States, where power consumption is rapidly increasing due to the growth of the AI industry.
The global HVDC market, which was valued at about 12.2 billion USD (approximately 16.8 trillion KRW) as of last year, is expected to grow at an average annual rate of 8.1% over the next 10 years, reaching about 26.4 billion USD (approximately 37 trillion KRW) by 2034. Hyosung Heavy Industries plans to use the new HVDC transformer plant as a stepping stone to gradually expand its presence in the global market, including overseas projects currently under negotiation.
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