HD Hyundai Heavy Industries to invest over 1 trillion won in power engines, SMRs
Hyundai Heavy Industries, a prominent shipbuilder, has announced a massive investment of 1.07 trillion won ($798 million) in the development of power-generation engines and small modular reactors (SMRs). This strategic move is aimed at meeting the increasing demand for electricity, particularly from AI data centers, and diversifying the company’s business portfolio beyond shipbuilding.
New Production Facilities for Power-Generation Engines and SMRs
The company revealed its plans to allocate a substantial portion of the investment, totaling 833.6 billion won, towards establishing a new 3-gigawatt production base for its Himsen engines in Ulju County, Ulsan. Hyundai Heavy Industries first introduced the Himsen engine in August 2000, which is utilized for ship propulsion, power generation in land-based plants, and emergency backup power at nuclear facilities. With over 15,000 units supplied to more than 60 countries by 2024, the Himsen engine has garnered global recognition.
The upcoming facility, covering an expansive area of 215,000 square meters, will house essential components such as engine assembly and testing plant, crankshaft machining plant, and engine block casting plant. Construction is slated to commence in the first quarter of the upcoming year, with the completion expected by May 2028. This new base is projected to add 4 gigawatts of annual onshore power-generation engine capacity, boosting the company’s total production capacity to 7.2 gigawatts by 2030.
Additionally, Hyundai Heavy Industries will invest 238.6 billion won in establishing a dedicated plant for manufacturing primary components for SMRs. These reactors offer a scaled-down output and modularize key equipment, providing a stable power supply with lower carbon emissions. The growing interest in SMRs is attributed to the surge in AI data centers’ demand for continuous power supply.
Expansion into the U.S. Data Center Power Infrastructure Market
Notably, Hyundai Heavy Industries has already ventured into the U.S. data center power infrastructure market. The company secured substantial power equipment supply contracts with U.S.-based Aypa Power and Kovan Energy Group, signifying its commitment to cater to the evolving needs of the power sector.
In conclusion, Hyundai Heavy Industries’ significant investment in power-generation engines and SMRs underscores its proactive approach towards addressing the escalating electricity demands driven by technological advancements and environmental considerations. The company’s strategic initiatives are poised to enhance its competitiveness and contribute to the sustainable growth of the energy industry.
