Hyundai Engineering & Construction's Innovative Energy Projects: Leveraging Electric Vehicles and Offshore Wind for Sustainable Solutions
Hyundai Engineering & Construction is collaborating with Hyundai Motor Group to expand distributed energy projects by harnessing surplus electricity from electric vehicles and other sources for sale in the power market. The company is developing a system that integrates bidirectional electric vehicle charging, known as vehicle-to-grid (V2G), with a virtual power plant platform. This initiative aims to leverage electric vehicles as mobile batteries to store excess electricity during high supply and release it during peak demand. A consortium of 15 members, including Hyundai Engineering & Construction, Hyundai Motor, Kia, and Korea Electric Power Corp., is involved in the project, with demonstration activities scheduled until 2028 before considering commercialization.
In addition to its distributed energy projects, Hyundai Engineering & Construction is focusing on expanding offshore wind and hydrogen-related initiatives as part of its energy sector expansion. The company has set a target of securing over 12 trillion won ($8.32 billion) in offshore wind orders by 2030. Furthermore, it is collaborating with international partners to enhance its capabilities in designing and constructing large-scale hydrogen and ammonia plants. The company is also exploring options for hydrogen production using nuclear power.
The coordination with Hyundai Motor Group is crucial for Hyundai Engineering & Construction's strategy, as electric vehicles can potentially supply excess electricity to buildings or local grids, integrating vehicles into the broader energy infrastructure. The company has signed a virtual power purchase agreement with Hyundai Mobis for 150 gigawatt-hours until 2048 and a solar-based power purchase agreement linked to Hyundai Motor's Ulsan plant. Regulatory work, including defining detailed rules under the Special Act on Activation of Distributed Energy and coordinating with Korea Electric Power for EV-grid connections, is still pending.
In conclusion, Hyundai Engineering & Construction's collaboration with Hyundai Motor Group in distributed energy projects signifies a strategic move towards leveraging electric vehicles and other energy sources for power market participation. The company's focus on offshore wind and hydrogen-related projects reflects its commitment to expanding its presence in the energy sector, with a strong emphasis on sustainable energy solutions and innovative technologies.