Competition among construction companies in new business ventures is expanding beyond simple project contracts to direct development and operation of projects. This shift occurs because participating in development, investment, and operation of power generation facilities can secure long-term revenue streams, rather than relying solely on construction work to boost sales. However, companies must also invest capital from the early stages of projects and bear risks arising from licensing, financial arrangements, and operational processes.
Daewoo E&C is expanding experience accumulated in power plants and civil and marine engineering into energy business. In offshore wind, the company is securing design technology for core structures and participating in power generation project development, while in fuel cells it has pursued a business model combining direct investment with long-term operation. In hydrogen, the company continues to build production facilities and discover related business opportunities.
What deserves attention is not the types of new business but the method of securing revenue. For offshore wind, the priority is connecting technology development to actual project contracts. For fuel cells, securing long-term revenue through power plant operation is important. Hydrogen business alone is not sufficient merely to construct facilities. For Daewoo E&C to expand its scope from existing construction capabilities into project development and operation, it must demonstrate the economic viability of each business.
Offshore wind: converting technology into contracts
The field Daewoo E&C focuses on in offshore wind is the floating structure, a core component of floating power generation facilities. Floating offshore wind installs generators on structures above the sea rather than fixing them to the seabed, making wind power generation possible even in deep waters. To harness wind resources in deep seas like the East Coast of Korea, both the stability of floating structures and manufacturing and installation costs must be considered.
In September 2026, Daewoo E&C obtained basic design approval from Norway's DNV and France's BV for a 22MW-class floating structure model jointly developed with a floating offshore wind research group. The model accounts for water depths of 150 meters in the East Sea, and the company stated it designed the model to reduce levelized cost of electricity by approximately 20 percent compared to existing models.
This certification is significant in that the basic design and safety of the technology were reviewed. Securing large floating structure design capabilities can enhance design and construction competitiveness in future offshore wind projects and broaden options for collaboration with companies possessing related technology. However, basic design approval differs from construction contracts for commercial power generation facilities or proof of actual power generation performance.
Separately from technology development, Daewoo E&C is also participating in development of a 250MW-class fixed-bottom offshore wind power generation project at Gulup-do in Incheon. By pursuing both floating technology development and fixed-bottom project participation in parallel, the company seeks to secure business opportunities in the offshore wind market.
The key going forward lies in connecting technology and development experience to actual contracts. Offshore wind involves substantial costs for structure manufacturing and marine installation, and licensing, grid connection, and financial arrangements also affect project implementation. Even with technical competitiveness, if projects do not lead to final investment decisions and orders, it is difficult to translate them into sales.
Therefore, floating structure approval should be viewed as a foundation for market entry rather than the completion of new business results. What matters is how much design and construction roles Daewoo E&C secures in future projects and whether it can convert technical competitiveness into construction contracts and business revenue.
Revenue models after power plant construction
If offshore wind is a field awaiting technology acquisition and new contracts, fuel cells represent a case where Daewoo E&C has materialized a business model combining development and operation. The flagship Ansan Danwon Phase 1 fuel cell power generation project, valued at approximately 105 billion won, was pursued with Daewoo E&C overseeing all stages of project development from site identification through financial arrangements, construction, and operation.
The distinguishing feature of this project is that it does not stop at revenue from construction contracts but can expect revenue through power plant operation. In turnkey projects, revenue is generated as construction progresses and upon completion. However, by directly participating in power generation business, the company can secure long-term revenue by supplying electricity and heat over the operating period. Experience in involvement from project development through operation can also serve as a foundation for discovering similar energy projects in the future.
The Ansan Danwon Phase 1 project was structured to operate for 20 years following planned completion in 2026. However, Daewoo E&C's English-language project materials specify that the power plant began commercial operation in December 2025. Therefore, this project can be viewed as a case that has transitioned from a planning stage to actual operating business.
Of course, operating business does not necessarily guarantee high profitability. Operating a power plant over a long period requires bearing fuel costs and maintenance expenses, and revenue varies depending on power sales conditions and facility utilization rates. Given large initial investment, recovery period and cash flow are also important. Taking on both development and construction does not eliminate business risk.
Hydrogen business presents more challenges to overcome in expanding this business model. Daewoo E&C has participated in water electrolysis-based hydrogen production facility construction projects and expanded plant design and construction capabilities into related fields. Water electrolysis produces hydrogen by decomposing water using electricity, and economic viability depends not only on equipment construction but also on power procurement costs and production efficiency.
Even after constructing production facilities, stable demand sources and sales conditions must be secured for the business to continue. If hydrogen production costs are high or purchasers are insufficient, achieving profitability is difficult even with equipment in place. Therefore, in hydrogen business, securing EPC contracts and establishing a business structure extending through operation and supply stages is important.
New business expansion: investment recovery is key
Daewoo E&C's energy business cannot be explained solely by entry into new fields. The company previously performed BOT-model projects in Laos hydropower development and accumulated experience combining development, investment, and construction in Pocheon combined-cycle power plant and Jeju solar power plant projects. Recent expansion into offshore wind, fuel cells, and hydrogen represents a flow of broadening existing energy development experience into new markets.
However, the timing of revenue generation and risk burden differ by project. Offshore wind can expect construction revenue only after actual orders follow technology acquisition and project development. Fuel cells can secure long-term revenue through power plant operation, but investment recovery and operating costs must be managed. In hydrogen, power costs and demand source acquisition remain key variables for project viability even after production facility construction.
Ultimately, evaluating new business performance cannot rely solely on project scale or expanded participation fields. It is necessary to distinguish whether technology certification has led to actual contracts, whether development projects have reached final investment decisions and construction start stages, and whether operating projects generate stable cash flow.
An industry official stated: "Energy business requires not only construction capabilities but also licensing, financial arrangements, and stable sales structures to secure project viability. The ability to connect opportunities secured in early development stages to actual contracts and long-term operating revenue is important."
Daewoo E&C's new business strategy represents an attempt to broaden roles from construction experience into project development and operation. The fuel cell project already in the operating stage can serve as a foundation for accumulating experience in development-type energy business, and offshore wind technology can expand future project participation opportunities. Going forward, rather than merely expanding business scope, the company's value as a growth driver will be determined by how stably it secures actual revenue while managing investment risk.
Original Korean article: Viewers
English brief by Korea Wind Intelligence, koreawindintel.com
