Selected as preferred bidder for Yongin cogeneration, New Honam combined-cycle plants

Secures foothold in power generation across metropolitan area and Honam region

An artist's rendering of the Yongin cogeneration power plant in Gyeonggi Province won by Hyundai Engineering [Source: Korea Midland Power website]
An artist's rendering of the Yongin cogeneration power plant in Gyeonggi Province won by Hyundai Engineering [Source: Korea Midland Power website]

Hyundai Engineering said Thursday that it was selected Wednesday as the preferred bidder for two power plant construction projects — the Yongin cogeneration power plant ordered by Korea Midland Power and SK Innovation E&S, and the New Honam combined-cycle power plant ordered by Korea East-West Power.

The Yongin cogeneration project will build a 1,050-megawatt power generation facility and a heat production facility with a capacity of 517 gigacalories per hour in Cheoin-gu, Yongin, Gyeonggi Province. Hyundai Engineering will oversee the design, procurement and construction of the plant, with the total project cost estimated at 1.75 trillion won ($1.31 billion). Construction is set to begin in September and be completed in September 2030. The electricity and heat produced after completion will be used to reinforce the energy supply for the Yongin semiconductor cluster, a key hub expected to drive the country's advanced industrial growth.

The New Honam combined-cycle project involves building a 500-MW LNG combined-cycle power plant on the site of the former Honam thermal power plant within the Yeosu National Industrial Complex in South Jeolla Province. An LNG combined-cycle plant generates electricity through a high-efficiency method that combines a gas turbine fueled by natural gas with a steam turbine driven by steam produced from the heat of the gas turbine's exhaust.

As the lead company in the consortium, Hyundai Engineering will handle design and procurement of major equipment, while Posco E&C will be responsible for procuring auxiliary equipment and handling construction. The total project cost is about 630 billion won, with construction slated to begin in June 2027 and be completed in May 2030. The plant is expected to help stabilize the electricity supply across the Honam region, including the Yeosu National Industrial Complex, once completed.

Through the two projects, Hyundai Engineering has secured a foothold to carry out power generation projects in major industrial hubs across both the metropolitan area and the Honam region. The company plans to keep strengthening its competitiveness in the energy business by pursuing additional opportunities nearby, including further cogeneration projects within the Yongin semiconductor cluster and district energy and power infrastructure projects in the Yeosu area.

In addition, carrying out the combined-cycle and cogeneration projects will further strengthen Hyundai Engineering's design-procurement-construction capabilities and technological expertise across power and heat production facilities as a whole. These capabilities are expected to serve as a foundation for expanding and reinforcing the company's business in next-generation energy infrastructure that produces both electricity and heat. This includes hydrogen power generation and auxiliary facilities for small modular reactors.

"This achievement reflects the market's trust in the technological capabilities and project execution track record that Hyundai Engineering has built up in the energy business," a Hyundai Engineering official said. "We plan to keep contributing to the nation's power supply stability through various energy transition infrastructure projects, including combined-cycle and cogeneration plants, while continuing to strengthen our business in next-generation energy fields such as small modular reactors, nuclear fusion and hydrogen."


hss@heraldcorp.com