HD Hyundai Heavy Industries signs two US power generation equipment supply contracts this year.
HiMSEN engine supply contracts worth 627.1 billion won in April and approximately 1 trillion won in August.
HD Hyundai Marine Solution signs agreement to acquire global engine service provider Goltens.
HD Hyundai Electric raises annual order target to $5.185 billion.
US data center power generation contracts
As Chung Ki-sun marks a year as chairman of HD Hyundai, the group is accelerating the expansion of its power generation business. It is increasing supplies of data center power generation equipment centered on HD Hyundai Heavy Industries' HiMSEN engines, while also expanding HD Hyundai Marine Solution's engine maintenance operations and HD Hyundai Electric's electrical equipment business.
According to HD Hyundai on October 26, HD Hyundai Heavy Industries has entered the US market for data center power generation equipment using its independently developed HiMSEN brand of four-stroke, medium-speed engines.
In April, HD Hyundai Heavy Industries signed a 627.1 billion won contract with US energy infrastructure developer Aperion Energy Group to supply power generation equipment based on 20 MW-class HiMSEN engines. The equipment is intended for use in data center power infrastructure.
In August, it signed a contract worth approximately 1 trillion won with US energy infrastructure developer Corban Energy Group to supply power generation equipment based on 9.6 MW-class HiMSEN engines. The equipment will serve as a power source for a US big technology company's data center.
The two contracts signed this year have a combined value exceeding 1.6 trillion won. HD Hyundai Heavy Industries uses HiMSEN engines not only for ships but also for data centers, national power grids and self-generation facilities.
Electricity use by US data centers is also expected to increase. According to the Electric Power Research Institute (EPRI), data centers' share of total US electricity consumption is expected to grow to as much as more than three times its current level by 2030.
Engine maintenance expansion
HD Hyundai Marine Solution is expanding its power generation engine maintenance business. In early October, the company signed a share purchase agreement to acquire a 100% stake in Goltens, a global engine service specialist serving marine and land-based power generation applications.
Goltens has overseas repair bases, specialist technical personnel and maintenance capabilities covering multiple engine brands. HD Hyundai Marine Solution plans to strengthen the competitiveness of its core aftermarket (AM) business through the acquisition.
Electrical equipment and core business expansion
HD Hyundai Electric is expanding supplies of power and distribution equipment for data centers. It has established a system to supply the power and distribution equipment needed by data centers as a package, rather than supplying individual pieces of electrical equipment as before.
In July, it signed a long-term framework supply agreement worth up to 1.1212 trillion won with a global big technology company. Reflecting increased orders driven by North American power infrastructure investment and data center expansion, it also raised its annual order target by 22.8%, from $4.222 billion to $5.185 billion.
HD Hyundai is linking HD Hyundai Heavy Industries' HiMSEN engines, HD Hyundai Marine Solution's maintenance business and HD Hyundai Electric's electrical equipment business with its power generation operations.
As Chung marks a year as chairman, HD Hyundai has established a structure of four core businesses by adding power generation to its existing shipbuilding, industrial machinery and oil refining operations, and is expanding businesses related to data center power generation equipment and power infrastructure.
Original Korean article: thepowernews.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
