HD Hyundai Electric, an energy solution provider under HD Hyundai, has secured two orders worth about 290 billion won ($223 million) to supply eco-friendly electric equipment in the United States and Europe, the company said Tuesday.
HD Hyundai Electric struck a 213.6 billion won deal to provide its electric power transformer to US energy firm Xcel Energy, marking the largest contract for a single product since the company’s spinoff from Hyundai Heavy Industries in 2017.
The high-electricity transformers being supplied to Xcel Energy will be delivered from 2025 to 2027 in phases, according to the Korean company. The US firm plans to use them at the power plants under construction in Colorado, Minnesota and Texas.
HD Hyundai Electric secured another contract worth 79.2 billion won with Danish offshore wind power company Semco Maritime to supply transformers for offshore substations and relevant equipment. It was the Korean firm’s first deal in the European offshore wind power market.
Semco Maritime will use HD Hyundai Electric’s products for the Baltica 2, which is the biggest offshore wind power project in the Polish part of the Baltic Sea.
According to the International Energy Agency’s electricity market report, the proportion of renewable energy in the global power generation mix is projected to rise from 29 percent in 2022 to 35 percent in 2025 with the US and European Union leading the charge in increasing the share of renewable energy.
“The investment in eco-friendly power grids to supply stable energy has been increasing as many countries’ new renewable energy businesses have hit the growth track at full scale across the world,” said an official at HD Hyundai Electric. “We will try our best to discover additional business opportunities as we closely monitor the global trend of transformation into new renewable energy.”