Korean Electric Power Corp (KEPCO, [015760:KS]) will lead a consortium to construct and operate a subsea power transmission system worth USD3.6bn with Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA), as reported by Korean Economic Daily on December 23. The project will build a high-voltage direct current (HVDC) transmission system to transport cleaner energy from Abu Dhabi’s onshore power network to ADNOC’s offshore production facilities. The consortium expects to build up the system in 2025 and return the full project to ADNOC after 35 years of operation. South Korea’s Samsung C&T [028260:KS] and Belgium’s Jan De Nul NV will also participate in the design and construction of the project.
ADNOC is expected to reduce over 30% of the carbon emissions generated by its offshore operations by replacing the existing offshore gas turbine generators with the power transmitted through the new HVDC system. The project has been selected as a candidate for South Korea’s K-New Deal Globalization Strategy, a plan that offers USD25.28bn export financing to boost eco-friendly overseas projects and digital exports by 2025. According to KEPCO, the project will take the lead in the competition for power grid deals after it became the successful bidder of the HVDC project. KEPCO also plans to expand its renewable energy and grid project portfolio to Latin America and Central Asia.