SK E&S

“From city gas to natural gas power generation to renewable energy and new energy business”


SK E&S selected as preferred bidder for largest 200 MW floating solar PV project


- Saemangeum Development and Investment Agency selects SK E&S as the preferred bidder for the industrial investment-type power generation project.
- The project aims to make Saemangeum a mecca of future industries and innovative companies by establishing a startup cluster and a data center.
- The renewable energy business is a pillar of future growth; SK E&S pursues a 2 GW renewable energy project with a 10 GW total goal, comprised of 5 GW each in Korea and abroad by 2030.
 
On September 16, SK Group’s eco-friendly energy company SK E&S announced its selection as the preferred bidder for the 200 MW floating solar photovoltaic (PV) project at the Industrial Investment Power Generation Project contest led by Saemangeum Development and Investment Agency (SDIA).
 
This corresponds to 200 MW of the 2.4 GW solar power generation project promoted by Saemangeum. If it wins, SK E&S is poised to become the largest floating solar PV company in the private sector. The company, which has already started the single largest offshore wind power project in Jeonnam (Sinan) this year, lays the foundation to become a future energy company as the possibility of winning the project increases.
 
SDIA decided to promote the Industrial Investment Power Generation Project that provides incentives to companies investing in Saemangeum from early last year and held a concept contest to execute the floating PV project in January after having briefing sessions for business operators. The concepts of four operators, including SK E&S and Gimje-si, were adopted, and SK E&S was chosen as the preferred bidder during the main bid for selecting the first operator on September 15.
 
SK E&S unveiled its plan to contribute to making Saemangeum a mecca for future industries and innovative companies similar to Almere, a representative reclamation city in the Netherlands.

• Almere was set to become a bed town supplying housing in Amsterdam. However, it was transformed into a self-sufficient new city with a planned population of 400,000 and 5,000 jobs created every year, making it the 7th largest city representing the Netherlands.

 
As such, the company aims to revitalize the local economy by establishing a startup cluster that creates quality jobs and a data center that uses electricity produced in Saemangeum to attract local and foreign IT companies in the long term.
 
In 2017, SK E&S began executing social value activities aimed to boost the local economy in Gunsan, a region near Saemangeum. The company plans to create a local win-win and shared growth model optimized for the city based on its experience and knowledge from the Local:Rise Gunsan project.
 
The company also plans to invest about KRW 100 billion for the establishment of the Saemangeum startup cluster to attract excellent anchor companies (leading companies) and workers in the early stages, as well as operate a company-specific program so that they can settle in the region and create stable jobs. Some venture companies that already produce business results through Local:Rise Gunsan intend to move into the Saemangeum startup cluster.
 
SK E&S also presented a blueprint to make the region a landmark by creating a library complex where people can immerse themselves in cultural and community experiences.
 
Moreover, it is set to collaborate with media/ICT company SK Broadband to build a data center that uses electricity produced in Saemangeum. The company also revealed its plan to make the city a data center hub in Asia by attracting global IT companies to create a large-scale data center special zone.
 
Beginning as a holding company for gas companies, SK E&S became Korea’s first private company to complete the liquefied natural gas (LNG) value chain, encompassing gas field development, the establishment of liquefaction/gasification infrastructure, transportation, and power generation. With this, the company aims to grow as Korea’s biggest green energy company by investing in renewable energy and energy solutions.
 
As climate change turns into a disaster beyond the climate crisis, SK E&S, an energy company, commits to responding to the call for carbon dioxide reduction actively.
 
To this end, SK E&S considers its renewable energy and energy solution businesses as one future growth engine and aggressively expands its presence not only in Korea but also worldwide.
 
Currently, it operates a renewable energy generation facility with a total capacity of 110 MW in Korea, with 47 MW from solar power plants in 36 regions and 63 MW from a wind power plant in Sinan-gun, Jeollanam-do.
 
Moving forward, the company plans to operate a facility of at least 2 GW by combining solar and wind power in the country, accounting for about 10% of the current total renewable energy capacity in Korea. Furthermore, it plans to expand its local and overseas renewable energy capacity to 10 GW and 5 GW, respectively, by 2030.
 
Solar power generation facilities with 750 MW capacities are set to be built in reclaimed tidal saline soils in Seosan and Dangjin, South Chungcheong Province, and Wando, Jeollanam-do. The plan serves to minimize environmental damage and revive the local economy using reclaimed land, where farming is impossible because of high salinity or low harvest productivity. In addition, a large-scale solar PV project is currently in the works on an abandoned salt field in Jeollanam-do by applying a local win-win model based on resident participation.
 
For wind power generation, 96 MW offshore wind power, the single largest in Korea, is promoted in Sinan, Jeollanam-do, and an additional 800 MW large-scale offshore wind power is also under review.
 
Adding to renewable energy, SK E&S also actively engages in the new energy business.
 
In line with the global energy trend of emphasizing efficiency instead of increasing power production, the company expands its investment to the energy solution sector.
 
In Korea, Energy Storage System (ESS) facilities are operated at 17 business sites nationwide, including Doosan Heavy’s Changwon Plant and SK Innovation’s Ulsan Plant. In California, the world’s largest ESS market, SK E&S operates a 345 MWh ESS-based virtual power plant (VPP).
 
Last July, the company also established a joint venture with Sunrun, the United States’ top solar ESS installer, to promote its home energy solution business.
 
SK E&S’s expansion of its eco-friendly energy portfolio is also in line with social value creation, which SK Group emphasizes. As Korea’s largest energy group, SK Group can help solve environmental problems and further contribute to creating a sustainable society by taking the lead in discovering clean energy sources for the future.
 
“Companies are in a situation where their survival is not guaranteed without proactive response to climate change and carbon emissions,” said SK E&S President Yu Jeong-joon. “Based on this project, SK E&S will contribute to not only leading the supply of clean energy but also invigorating the local economy.”