Samsung C&T Pursues Solar, Hydrogen, and SMR Ventures... Aiming to Become a Global Energy Solution Leader

[Rebuild K-Construction] Samsung C&T Construction Division
Largest-Ever Solar Power Project in Qatar
From Solar Panel Installation to EPC and Operations
Accelerating Green Hydrogen and Renewable Energy Businesses

Editor's NoteThe sluggish construction investment has been acting as the Achilles' heel of South Korea's economic growth for several years. This year is no different. According to the Bank of Korea, construction investment is expected to decline for five consecutive years from 2021 through this year. Structural issues such as unsold housing units piling up in provincial areas and chronic oversupply of commercial real estate remain unresolved. In addition, a series of external variables-including an early presidential election following the martial law crisis and safety accidents-have led the central bank to project that the construction industry's weakness will lower the country's growth rate by 0.3 percentage points. With the strong won-dollar exchange rate trend, raw material prices continue to soar, and negative perceptions surrounding the construction industry are not easily changing. Nevertheless, construction companies are actively preparing for the future, even under these challenging circumstances. In this era where low growth has become the new normal, they are seeking change by venturing into new businesses that were difficult to attempt in the past or by refining advanced technologies and applying them to the construction industry. Expanding overseas business based on extensive construction experience also remains an area of keen interest. Korean construction companies now face the task of adapting to a changed environment and finding new opportunities amid crisis. The construction industry is also responsible for laying the foundation for advanced industries such as artificial intelligence (AI) to function effectively, and for upgrading infrastructure that is directly linked to the quality of life for society's members. Beyond traditional business models, the industry must transform into a high value-added sector and introduce eco-friendly technologies to ensure sustainability. The Asia Business Daily has examined the achievements and efforts of domestic construction companies as they overcome internal and external challenges and prepare for a new leap forward in this 'K-Construction' special feature.

Samsung C&T Corporation received the notification of award in September for a solar power generation project with a total capacity of 2000 MW, commissioned by QatarEnergy, the state-owned energy company of Qatar, and held a signing ceremony with the client, QatarEnergy. Photo by Samsung C&T Corporation

The construction division of Samsung C&T Corporation is reorganizing its business with a focus on new energy ventures. The company is pursuing a strategy to secure business opportunities by not only investing and building technological capabilities but also collaborating with global partners. Through energy-related businesses such as solar power, hydrogen, and small modular reactors (SMRs), Samsung C&T aims to establish itself as an "energy solution provider."

Based on its extensive experience in projects within the renewable energy sector, including solar power, Samsung C&T is expanding the scope of its next-generation energy business to include areas such as green hydrogen.

Visible Results in New Energy Businesses

The solar power generation project currently being carried out by Samsung C&T in Qatar is the largest of its kind in the country and boasts the highest capacity among solar projects to date. The project covers a site nine times the size of Yeouido (2.9㎢), with a generation capacity of 2,000 MW. Upon completion, it will be able to supply enough electricity to reliably power 750,000 households, even considering Qatar's world-leading per capita electricity consumption. Commissioned by QatarEnergy, the state-owned energy company, this project is a core component of "Qatar National Vision 2030," which aims to accelerate the country's energy transition centered on renewables.

The company's successful track record with previous solar projects played a significant role in winning this contract. In July 2022, Samsung C&T successfully completed the "Mangilao Solar Project" in Guam, United States, gaining experience across all stages of the business-from engineering, procurement, and construction (EPC) to operations-beyond simply installing solar panel modules. A Samsung C&T official stated, "With the successful execution of consecutive projects, we have further established ourselves as a 'global energy solution leader' in the energy business sector," adding, "We are strengthening our business competitiveness by expanding our network with major domestic and international companies and local partners in the solar power field."

In November, Samsung C&T formed the "Team Korea Consortium" with Korea Electric Power Corporation and Korea East-West Power and secured a contract for the Guam ESS-linked solar power project. By 2027, the company will supply all electricity produced at a power plant that integrates 132 MW of solar facilities and a 260 MWh battery energy storage system (BESS) to the Guam Power Authority. Samsung C&T is also responsible for the construction of the power plant.

In the green hydrogen sector, which is expected to see significant market growth in the mid to long term, Samsung C&T is also seeking business opportunities. In Australia, a country rich in renewable energy resources, the company is working with leading firms to develop renewable energy complexes and establish green hydrogen production facilities.

Samsung C&T Corporation's construction division signed a memorandum of understanding (MOU) in June 2023 in Romania to jointly promote a project to build small modular reactors (SMRs) in Romania with five companies, including the Romanian Nuclear Company, E-Infrastructure, Nova Power & Gas, NuScale Power from the United States, and Fluor Corporation from the United States. Photo by Samsung C&T Corporation

In the small modular reactor (SMR) sector, which is attracting attention as a next-generation energy source, Samsung C&T is striving to secure a leading position. The company is solidifying cooperation with NuScale Power, a leading SMR technology company from the United States, to jointly pursue business in global markets such as Europe and Asia. Samsung C&T signed a memorandum of understanding (MOU) on the Romanian SMR project with five global nuclear power leaders, including the Romanian Nuclear Company, NuScale Power, and Fluor Corporation. The company also agreed to jointly carry out the front-end engineering design (FEED) for the Romanian SMR project with three global engineering firms: Fluor Corporation, NuScale Power, and Sargent & Lundy. The Romanian project, which aims for commercial operation by 2030, is expected to serve as a bridgehead for Samsung C&T's expansion into the European market.

A Samsung C&T official stated, "The Romanian SMR project is significant as it is the first project to replace coal-fired power plants in Europe with SMRs," adding, "Through this FEED contract, we will strengthen our position as a global SMR player."

Building the Next-Generation Energy Value Chain through Global Alliances

The construction division of Samsung C&T is also moving swiftly to establish a next-generation energy business value chain through partnerships with global companies. In the SMR business, the company is not only investing in NuScale Power but also engaging in technology cooperation and personnel exchanges. Samsung C&T is working with Karnfull Next AB, a private Swedish SMR developer, to select relevant technologies, conduct environmental impact assessments, and collaborate on power plant construction for the Swedish SMR business.

Samsung C&T Corporation has signed a business cooperation agreement with Canfuel Next, a private Swedish small modular reactor (SMR) developer, to collaborate on SMR business development. At the MOU signing ceremony for Swedish SMR business cooperation held last December at the Grand Hyatt Seoul Hotel, CEO Oh Secheol (right) and other officials took a commemorative photo. Provided by Samsung C&T Corporation

The company is also collaborating with Fermi Energia, a private nuclear power company in Estonia, to develop local SMR projects. In October, Samsung C&T established a strategic partnership with GE Vernova Hitachi Nuclear Energy (GVH) to expand its SMR business in Europe, Southeast Asia, and the Middle East. By leveraging the expertise of its subsidiary Whessoe, a world-renowned energy storage facility design firm, the company is accelerating the development of technologies for liquefied hydrogen storage and regasification.

In October 2023, Samsung C&T obtained certification for the world's largest liquefied hydrogen storage tank design from the international certification body DNV (DetNorske Veritas). Liquefied hydrogen is hydrogen gas cooled to extremely low temperatures and converted into a liquid state. The certified storage tank has a capacity of 40,000㎥, capable of storing up to approximately 2,800 tons of cryogenic liquefied hydrogen at once-enough to fuel more than 500,000 hydrogen vehicles in a single charge.

The construction division of Samsung C&T stated, "We will continue to seek new business opportunities in the energy sector and solidify our position as an energy solution provider going forward."