Hyundai E&C expands its entry into the U.S. energy market by participating in solar power generation projects.
Hyundai E&C announced on the 10th that it has completed financing for a solar power generation project in Texas worth 750 billion won as part of 'Team Korea,' which comprises private companies, public enterprises, and policy funds, including Korea Midland Power (KOMIPO), Korea Overseas Infrastructure & Urban Development Corporation (KIND), EIP Asset Management, and PIS Fund, on the 9th (local time) and has commenced construction.
The project name for this initiative is 'LUCY,' which aims to construct and operate a 350 megawatt alternating current (MWac) solar power plant in Concho County, northwest of Austin in Texas. This project covers an area of approximately 11,735,537 square meters, equivalent to about four times the size of Yeouido or about 1,653 soccer fields, with an investment of approximately 750 billion won. It is expected to produce and sell about 926 gigawatt hours (GWh) of electricity annually for 35 years after completion, which is enough to supply around 260,000 households based on a four-person household's average monthly usage of 300 kilowatt hours (kWh).
Hyundai E&C participates in the development stage of the project, responsible for equity investment, technical review, and the supply of solar modules. The construction will be carried out by a local company, Primoris, while Korea Midland Power (KOMIPO) will handle operations.
In August 2023, project fund investment contracts and business rights acquisition contracts were finalized. This project began in May of last year after completing various permits for local power grid operations, including grid connection surveys and power system interconnection contracts.
Recently, changes in U.S. government policies have increased entry barriers for domestic corporations into the renewable energy market. However, a representative from Hyundai E&C explained that this project is scheduled for completion in June 2027 and will not be subject to regulations.
The generated electricity is expected to be sold to multiple global corporations, including Starbucks and Workday, through virtual power purchase agreements (VPPA).
A representative from Hyundai E&C noted, 'As energy demand is explosively increasing globally, energy security and supply stability have emerged as key global issues,' and added, 'Hyundai E&C is actively pursuing this solar project along with large-scale nuclear power, small modular reactors (SMR) projects, and is focusing its efforts on core industries in the energy sector, including hydrogen, offshore wind, and transmission.'
He added, 'In the future, we will not only accelerate technology development in the energy sector but also secure future growth engines through investment and development projects in advanced markets, leading the way in next-generation energy transitions.'