Hanwha Solutions Achieves First Domestic Production of High-Value Material for Ultra-High Voltage Cables... Expected to Reduce Import Dependence

[Asia Economy Reporter Kim Hyewon] Hanwha Solutions is set to commercialize the semi-conductive material for ultra-high voltage cables, which had previously been entirely dependent on imports, for the first time in Korea. This marks the successful localization of ultra-high voltage cable materials, a market long monopolized by global companies such as Dow and Exxon, through years of research and development (R&D) using proprietary technology.

Hanwha Solutions' Chemical Division announced on the 13th that it has completed pilot production of EBA (Ethylene Butylacrylate Copolymer), a core material for ultra-high voltage cables, and will begin commercial production at its Ulsan plant starting from the second quarter of this year.

EBA, based on ethylene, is highly resistant to heat and moisture and offers excellent protection against electrical damage, making it suitable for ultra-high voltage cables transmitting over 110kV. It is a high-value-added material primarily used in power cables requiring high quality, such as submarine cables connecting offshore wind farms and onshore substations, as well as cables used for energy transmission and distribution in large power plants.

Since 2017, Hanwha Solutions has developed EBA production technology through five years of R&D and established commercial production facilities with an annual capacity of 40,000 tons. With the full-scale production of EBA this year, the company plans to package it together with XLPE (Cross Linked-Polyethylene), an insulating material that prevents power loss and is another key component of ultra-high voltage cables, for export to major overseas markets including China and the Middle East. Last year, Hanwha Solutions expanded its capacity to produce up to 110,000 tons annually of 275kV-grade XLPE.

The global EBA market was approximately 70,000 tons annually as of 2021. It is rapidly growing due to increased demand for ultra-high voltage cables driven by investments in renewable energy infrastructure such as wind and solar power plants and the replacement of aging power grids. In Korea alone, more than 6,000 tons of EBA are used annually, and Hanwha Solutions expects this to result in an import substitution effect worth up to 15 billion KRW each year.

Following the successful commercialization of the high-performance optical lens material XDI in 2020, Hanwha Solutions is continuously promoting the localization of high-value-added materials, including the development of high-efficiency carbon molecular sieves for carbon capture.

Moon Kyungwon, Executive Vice President and Head of Hanwha Solutions' PO Business Division, stated, “With the advent of the carbon-neutral era, energy-efficient cables are gaining attention, making the localization of EBA, a core material for ultra-high voltage cables, even more meaningful. We will diversify our portfolio of high-quality cable materials and target the renewable energy infrastructure market.”

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