- Joint promotion of Tongyeong Natural Gas Power Plant Project (KRW 1.4 trillion) and establishment of continuous cooperation
- Synergy between HDC’s infrastructure development project know-how and Hanwha Energy’s energy business is expected
HDC (Chairman Mong-gyu Chung) and Hanwha Energy (CEO In-seop Chung) signed a joint promotion agreement for Tongyeong Natural Gas Power Plant on November 5 at the HDC Building in Samsung-dong.
Tongyeong Natural Gas Power Plant Project is a project to build and operate one 1,012MW LNG combined cycle power plant and one 200,000kW storage tank on 275,269㎡ of land in Seongdong Shipbuilding & Marine Engineering, Gwangdo-myeon, Tongyeong-si, Gyeongsangnam-do. The total project cost is KRW 1.4 trillion. Under the agreement, HDC will be responsible for the construction and operation of the power plant and Hanwha Energy will be in charge of natural gas supply. Moreover, the two companies will actively cooperate in the development of idle sites in the future.
Since the Tongyeong Natural Gas Power Plant Project was reflected in the 6th Basic Plan for Electricity Supply and Demand, HDC established the Tong-Yeong Eco Power Co., Ltd. in 2013 and acquired a power plant business license for the project. The project aims to obtain approval from the Ministry of Trade, Industry, and Energy by the end of 2020. The construction will start in 2021 and begin commercial operation in the first half of 2024, after three years of construction. The Tongyeong Natural Gas Power Plant is a large-scale power plant (>1,000MW), which is difficult to be licensed in the future. Therefore, many global oil refinery and gas companies have been hoping to participate in the project. EPC business operators have shown interest steadily.
Mong-gyu Chung, Chairman of HDC, said, “I believe that this project will be promoted more stably and efficiently owing to this joint promotion agreement with Hanwha Energy, a comprehensive energy company. The Tongyeong Natural Gas Power Plant Project will contribute to Tongyeong's future growth, including regional economic development, and reduce greenhouse gas emissions because it uses natural gas, a clean fuel.” In-seop Chung, CEO of Hanwha Energy, said, “This natural gas power plant project is highly symbolic because it matches the vision of the company and bridges between new renewable energy and coal-based thermal power plant projects. We will continue to make many accomplishments while continuing to work with HDC”
HDC, meanwhile, focuses on discovering new business platforms and reorganizing its group portfolio for sustainable growth, as a holding company of HDC Group. For instance, it has acquired Real Estate 114, a comprehensive real estate service company, in 2018 in addition to Tongyeong Natural Gas Power Plant Project. Moreover, HDC Hyundai Development Company, an affiliate of HDC Group, has actively expanded its investment area such as taking over the Oak Valley, Wonju, this year and newly launching HDC Resort.