SK Ecoplant, the green business unit of SK Group [210980:KS], has signed a memorandum of understanding (MOU) with China State Construction Engineering Corporation (CSCEC) [601668:CH], the world’s largest construction contractor, to jointly develop overseas renewable energy resources, as reported by Korea Economic Daily on January 6. Under the MOU, the two parties target unexplored renewable energy markets in Africa, Asia, and the Chinese mainland. SK Ecoplant will bring expertise in renewable energy and green hydrogen technology, as well as business development and project financing services, while CSCEC will provide access to its networks in 77 countries worldwide.
The two companies will primarily develop overseas businesses in Egypt and China, according to SK Ecoplant. Egypt is seen as a potential producer of green hydrogen due to its ample sunlight, favorable weather conditions, and large land area. In China, the solar power industry is expected to expand quickly with the boom of rooftop solar power. Under the Clean Development Mechanism (CDM) set out by the United Nations, enterprises can earn carbon emission allowances for registered clean energy projects. In January 2022, SK Ecoplant announced a USD200m investment in a 250-megawatt (MW) rooftop solar power project in Vietnam’s Dong Nai Province. Once completed, the project could generate 365,000 megawatt-hours (MWh) of power annually and secure carbon emission rights for about 330,000 tons of carbon dioxide. The carbon emission allowances generated from the project will be brought into South Korea and sold to other firms.