SK Construction Launches Asia's Largest Eco-Friendly Fuel Cell Power Plant

Panoramic view of Hwaseong Fuel Cell Power Plant in Jangan-myeon, Hwaseong-si, Gyeonggi, constructed by SK Engineering & Construction. (Provided by SK Engineering & Construction)

[Asia Economy Reporter Lee Chun-hee] SK Engineering & Construction is accelerating its eco-friendly new energy business by speeding up its fuel cell power generation project, an environmentally friendly power source.

On the 3rd, SK Engineering & Construction announced that it has completed the Hwaseong Fuel Cell Power Plant, Asia's largest solid oxide fuel cell (SOFC) power plant with the highest efficiency currently available, and has also started commercial operation of the Paju Fuel Cell Power Plant.

The Hwaseong Fuel Cell Power Plant was built on a 7,017㎡ site in Jangan-myeon, Hwaseong-si, Gyeonggi Province, with participation from SK Engineering & Construction and Korea South-East Power Co., Ltd. It is the largest SOFC power plant in Asia with a generation capacity of 19.8 MW. Operating at a utilization rate of 95% and an efficiency of 56%, which is among the highest for fuel cells, it produces 165,000 MWh of electricity annually, supplying power to approximately 43,000 nearby households.

The total project cost was 141.4 billion KRW, of which SK Engineering & Construction (15.2%) and Korea South-East Power (84.8%) invested 27.5 billion KRW as equity. SK Engineering & Construction was responsible for installation and construction, starting construction in July last year, completing the work in May, and commencing commercial operation. The plant is scheduled to operate for about 20 years until April 2040.

Notably, this project is significant as it is the first SOFC power generation project in Korea to secure project financing (PF) for the project cost. This reflects market recognition of the business viability and technological capabilities of SOFC power generation.

Panoramic view of Paju Fuel Cell Power Plant in Wollong-myeon, Paju-si, Gyeonggi-do, constructed by SK Engineering & Construction (Provided by SK Engineering & Construction)

In addition, SK Engineering & Construction announced that the Paju Fuel Cell Power Plant project, conducted jointly with Korea East-West Power and Seoul City Gas, has recently entered commercial operation. The project involves constructing an 8.1 MW SOFC power plant on a 2,000㎡ site in Wollong-myeon, Paju-si, Gyeonggi Province, with operations planned until 2040. SK Engineering & Construction handled installation and construction and invested 5% of the total project cost of 53.8 billion KRW. The remaining shares were invested by Korea East-West Power (89%) and Seoul City Gas (6%), with all three companies fully funding the project.

This project is characterized as a community co-prosperity model that supports not only power generation and supply but also city gas supply. During the construction of the SOFC power plant, additional city gas supply pipelines were installed to enable the use of city gas in rural areas previously not supplied with it.

Through this, it is expected to contribute to enhancing energy welfare by producing eco-friendly energy and expanding city gas supply, as well as creating social value. SK Engineering & Construction plans to continuously promote regional co-prosperity and develop customized business models based on this project.

Meanwhile, in January, SK Engineering & Construction completed the establishment of 'Bloom SK Fuel Cell,' a domestic joint venture with the global fuel cell main equipment manufacturer Bloom Energy from the United States, to begin full-scale production of SOFCs. The Gumi plant in Gyeongbuk has completed installation of production facilities and started fuel cell production in July. The annual production capacity began at 50 MW and is planned to gradually expand to 400 MW.

The domestic production of SOFC is significant as it localizes the highest specification products. Bloom SK Fuel Cell plans to leverage the excellent quality and price competitiveness of domestic parts through collaboration with specialized small and medium-sized enterprises. This is expected to support co-growth with SMEs and contribute to job creation. The industry anticipates that through phased technological development and adoption of new technologies, it will contribute to fostering the domestic hydrogen industry and enhancing competitiveness.

SOFC is a renewable distributed power generation system that extracts hydrogen from liquefied natural gas (LNG) and reacts it with oxygen to generate electricity, achieving power generation efficiency far superior to conventional fuel cells. It is an eco-friendly energy source with no fine dust emissions, has a small installation footprint, is safe, and features a familiar appearance similar to high-tech products. Overseas, it is installed and operated in various locations such as urban buildings, supermarkets, and residential areas.

Jae-hyun Ahn, CEO of SK Engineering & Construction, said, "Through close cooperation with Bloom Energy, we will further strengthen the 'One Team Operation' system and continuously explore business opportunities in the global market. We will create a co-growth role model that significantly expands overseas export channels for domestic small and medium-sized parts manufacturers."

This content was produced with the assistance of AI translation services.