SK Eternix, a South Korean renewable energy firm that emerged from SK D&D, is anticipating substantial growth in its fuel cell and onshore wind sectors this year, with offshore wind ventures slated for the following year. The split from the SK Group aims to spotlight its renewable energy endeavors, previously overshadowed by real estate activities.
In the latter part of this year, SK Eternix will kick off the Shinan Ui Offshore Wind Farm Project. This 390-megawatt endeavor, situated off the southeast coast of Ui-do in Sinan-gun, South Jeolla province, represents South Korea’s inaugural large-scale offshore wind farm and stands as SK Eternix’s most ambitious undertaking thus far. The project, a collaborative effort involving Hanwha Engineering & Construction, SK D&D, and others, is set for contract finalization in the third quarter, with construction slated to commence in the fourth quarter.
The project carries a budget of approximately $1.85 billion (2.5 trillion won), with SK Eternix’s share amounting to around $742 million (1 trillion won). This investment is forecasted to generate annual revenues of roughly $222.5 million (300 billion won) starting in 2025, following the completion of various licensing requirements and the establishment of fixed-price contract sales partnerships.
In 2023, the company anticipates significant contributions to its sales figures from its onshore wind and fuel cell businesses. SK Eternix presently holds rights to 323 megawatts of onshore wind power, including the operational Gasiri wind farm in Jeju Island and the Uljin wind farm. Its offshore wind portfolio, inclusive of the Shinan Ui project, amounts to 1.4 gigawatts.
With regards to fuel cells, the company aims to have 200 megawatts of power plants operational or nearing commissioning this year. The Chilgok (20 megawatts), Yakmok (9 megawatts), and Boeun (20 megawatts) plants are slated for commercial operation within the year, while construction is planned for the Paju (31 megawatts), Chungju (40 megawatts), and Daesowon (40 megawatts) plants. Revenue projections for the Chilgok and Yakmok plants stand at approximately $111 million (150 billion won) this year, with the Boeun plant potentially generating $74.2 million (100 billion won) by year’s end.
Moreover, SK Eternix’s collaboration with SK Gas and other affiliates in the renewable energy sector is gaining traction. The partnership’s investment in a 200-megawatt energy storage system (ESS) power plant in Texas, United States, is progressing as scheduled, with operational commencement expected in the third quarter of this year, further solidifying SK Eternix’s position in the Korean Virtual Power Plant (VPP) market.
SK Discovery holds the majority stake in SK Eternix at 34.1%, with private equity firm Hann & Company as the second-largest shareholder at 25.1%.