The global community is proactively responding to climate change to safeguard the survival of humanity and ensure economic profits. Companies are increasingly required to fulfill social responsibility for environmental pollution caused by GHG emissions and waste generated from their operations. This prompted us at SK D&D to develop and implement strategies aligned with SK Group’s 2040 Net Zero goal and to contribute to the nation’s effort to achieve carbon neutrality through the generation of eco-friendly energy. Furthermore, we continue with energy conservation and climate action through the development, management and remodeling of eco-friendly buildings to create a green building ecosystem across the whole of our business domain.
Our Approach to Eco-friendly Energy Development
Diversification of the Business Structure
Eco-friendly Energy Growth
SK D&D aims to expedite the transition to cleaner energy and contribute to mitigating GHG emissions through the expansion of eco-friendly energy generation. In line with the accelerating energy transition, market restructuring towards clean energy, and the mounting importance of supply chain issues and energy security in the nation’s journey to achieve carbon neutrality by 2050, we will expand our business operations from conventional development and management to power generation scale-up, solutions, and distribution markets to diversify our business structure.
Our Approach to Business Expansion
Wind Power Generation
To emerge as Korea’s largest power generator, SK D&D remains focused on both onshore and offshore wind power as major renewable energy resources for the future. Our onshore wind power capacity amounts to 83MW, including Hyeonjong Mountain in Uljin (53MW) and Gasiri in Jeju (30M). The primary revenue streams of our onshore wind power operations include our generation business to create profits from electricity production and REC (Renewable Energy Certificate) trading, development & sales, power plant construction, and EPC business for O&M outsourcing. In particular, our Uljin wind power farm was constructed in areas damaged during the fire that affected the Hyeonjong Mountain in 2007 and is touted as a best practice in recovering the value of the site through power plant development and creating economic benefits. Our offshore wind power business is being developed in Ui-do, Sinan (400MW) and in Gureop-do, Incheon (230Mw). As such projects inherently require long-term development and large-scale capital, we are building strategic partnerships with domestic and international leaders to ensure their successful development and expansion.
|Operating||Wind power plant in Gasiri, Jeju||30MW|
|Wind power plant in Uljin||54MW|
- *Project under development : (Onshore) gunwi, uiseong, cheongdo, (offshore) Uim Sinan
Solar Power Generation
In line with the transition to eco-friendly energy and the increased commitment to the carbon neutrality initiative, SK D&D is conducting business in the entire value chain of solar power generation from development to EPC and O&M. Building upon our large-scale solar power business experience accumulated through the Yeongam F1 Circuit and Dangjin Eco Power projects, we lead the solar power generation and EPC business while proactively pursuing nationwide development opportunities including onshore solar power using salt-affected farmland and offshore solar power. In anticipating the growing demand for renewable energy at the national level, we also strive to secure distributed resources through the acquisition of small/mid-sized power generation resources in addition to our development business. Providing digital O&M and AI/DT-based solutions, we seek to tap into diverse business territories based on our solar power generation business.
|Operating||Yeongam F1 Circuit Solar Power||13.296MW|
|Daegu Sewage Treatment Plant||7.693MW|
|Namwon Solar Power Plant||657kW|
|Shinheung Solar Power Plant||440kW|
|Suncheon Solar Power||996kW|
|Dangjin Eco-power Solar Plant||9MW|
- *Project under development : Dangjin, Seosan, Jindo, Jangheung
Unlike traditional power generating methods that produce energy through the combustion of fossil fuels, fuel cell power generation is eco-friendly and efficient as it produces electrical energy through chemical reactions. To advance the fuel cell business, SK D&D signed a distributorship agreement with the US-based company Bloom Energy in 2019 to cover the domestic distribution market, and launched fuel cell business by initiating the construction and commercial operation of Cheongju Eco Park (20MW) in the second half of 2021. We are expanding our fuel cell power generation business to include Eumseong Eco Park (20MW), and are also planning to establish a business model with reinforced environmental and social considerations such as joining up with biogas and pursuing shared growth with local communities through smaller-scale fuel cell power generation. We will expand eco-friendly power plants to demonstrate our value as a renewable energy generation developer and do our utmost to help mitigate global environmental challenges while leveraging our power plant EPC and O&M capabilities to bolster our fuel cell business.
|Operating||Cheongju Eco Park||19.8MW|
- *Project under development : Eumseong, Eco park in Chilgok, Eco green in Paju etc.
SK D&D owns and operates Korea’s largest ESS to generate synergy with the government’s renewable energy expansion policy and to help stabilize the power system. Currently, our ESS capacity amounts to 800MWh across 28 sites all over the nation. We have established the safety of such sites through differentiated designs, high performance facilities, and high-specification fire extinguishing systems, and deployed value-up solutions based on real time data analytics technology to improve their profitability. ESSs play an essential role for distributed power and energy efficiency improvement as well as for savings on electric bills. Our ESS business will generate greater synergy with the expanding renewable energy generation infrastructure.
Performance in Eco-friendly Energy Generation
To do our part in realizing the national carbon neutrality goal and combat the global challenge of climate change, we expand the supply of eco-friendly energy through solar power, wind power and fuel cell generation which emit less GHG emissions.
Eco-friendly Energy Generation and GHG Emissions Mitigation Effects
|Total power generation||MWh||70,782||84,158||91,630||96,160|
|Total GHG emissions mitigation effects||tCO2 eq.||32,769||38,831||42,378||40,368|
- * For eco-friendly energy generation plants where SK D&D has made equity investments, the ratio of equity ownership was applied to total generation and mitigation effects.