HD Hyundai E&F, the district-energy subsidiary of HD Hyundai Oilbank, has completed a liquefied natural gas (LNG) cogeneration power plant at the Daesan petrochemical complex in Seosan, South Chungcheong Province, at a cost of approximately 435 billion won (about $323 million). The facility entered commercial operation in late July. The completion marks HD Hyundai’s entry into the Daesan complex’s LNG cogeneration market, which had long been led by SK Innovation, and comes as the complex’s designation as a distributed-energy special zone now allows HD Hyundai E&F to sell electricity directly to 14 companies within the site.
HD Hyundai E&F was established in 2021 by HD Hyundai Oilbank as a dedicated district-energy subsidiary. The company began construction of the plant in March 2024 and spent roughly two years building the power- and heat-supply facilities. After phased test runs confirmed the equipment’s performance and stability, the plant entered commercial operation in late July. A completion ceremony was held on September 14 at the plant site in Daesan-eup, Seosan, attended by HD Hyundai Oilbank co-CEOs Song Myung-jun and Jeong Im-joo, along with HD Hyundai E&F CEO Kim Myung-hyun, among other officials.
The power and thermal energy produced by the new plant will be supplied to companies operating within the Daesan petrochemical complex, including H&L Advanced, the integrated entity formed from HD Hyundai Chemical and Lotte Daesan Petrochemical. The Daesan complex had until now been effectively served mainly by a LNG cogeneration operator, SK Innovation, which supplied electricity and heat to resident companies. HD Hyundai E&F’s market entry introduces a second supplier into that structure. Notably, following the complex’s designation as a distributed-energy special zone late last year, HD Hyundai E&F has secured the basis to sell electricity directly to 14 companies within the complex.
The LNG cogeneration plant was built at a cost of approximately 435 billion won (roughly $323 million). The facility has a power generation capacity of 290 megawatts (MW) and a heat generation capacity of 321 metric tons (t) per hour. It applies a high-efficiency combined-cycle gas turbine (CCGT) system fueled by LNG to produce electricity and thermal energy simultaneously. Construction began in March 2024 and was completed roughly two years later, with commercial operation starting in late July, ahead of the September 14 completion ceremony.