DL E&C to build plant capable of clean hydrogen power generation; facility expected to stabilize Jeju Island's grid amid renewable energy expansion

DL E&C signed a contract with Korea East-West Power on June 11 for the construction of the East Jeju combined-cycle power plant. At the signing ceremony, DL E&C CEO Park Sang-shin (left) and Korea East-West Power President Kwon Myung-ho pose for a photo. [DL E&C]
DL E&C signed a contract with Korea East-West Power on June 11 for the construction of the East Jeju combined-cycle power plant. At the signing ceremony, DL E&C CEO Park Sang-shin (left) and Korea East-West Power President Kwon Myung-ho pose for a photo. [DL E&C]

DL E&C announced Monday it has won a sole contract worth 550 billion won ($362 million) to build the East Jeju combined-cycle power plant. The company has been posting strong results in energy transition projects — moving away from coal-fired thermal generation toward small modular reactors and a new cogeneration plant for S-Oil.

The contract was signed June 11 at Korea East-West Power's headquarters in Ulsan, with DL E&C CEO Park Sang-shin and Korea East-West Power President Kwon Myung-ho attending alongside other officials from both companies. Industry observers say the award recognizes DL E&C's competitiveness in clean energy, given that the plant is designed to accommodate clean hydrogen power generation.

The project centers on building a 150-megawatt gas combined-cycle power plant in Dongbok-ri, Gujwa-eup, Jeju Island. Korea East-West Power commissioned the project, and DL E&C will handle the full engineering, procurement and construction process — including commissioning — targeting completion in 2030.

"More than 70 years of power plant construction experience and a deep understanding of the Jeju region formed the foundation for this win," a DL E&C official said. "We believe our basic design capabilities — which are key to improving power generation efficiency, the core of any plant's competitiveness — were particularly well regarded."

The East Jeju combined-cycle power plant will incorporate Advanced Work Packaging, a smart project management methodology.

Jeju Island has been pursuing a "carbon-free island" policy, steadily raising the share of renewable energy in its power mix. Renewables currently account for about 20 percent of the island's electricity generation — the highest of any local government in the country — but the intermittency of output, which fluctuates with the time of day and weather conditions, remains a challenge. To address this, DL E&C plans to install a synchronous condenser at the plant to stabilize the grid.

The company also plans to introduce turbines that would allow the facility to transition into a clean hydrogen power plant capable of generating electricity at the same level as a conventional plant.

"Converting to clean hydrogen power generation is an economical, low-carbon solution that minimizes shutdown periods and cuts costs compared with building an entirely new plant," said Yoo Jae-ho, head of DL E&C's plant business division. "We will actively pursue contract expansion by combining the trust we have built in the plant sector with future core technologies such as hydrogen."

Meanwhile, DL E&C posted preliminary first-quarter sales of 1.7252 trillion won and operating profit of 157.4 billion won on a consolidated basis.


hope@heraldcorp.com