A map on a project to build a road, connecting Bergen, the second largest city of Norway, and Øygarden whose project, offered by the Norwegian Public Roads Administration (NPRA)

SK ecoplant achieved the feat of becoming the first Korean contractor to enter the Norwegian public-private partnership business market, following its market entry in the United Kingdom.

SK ecoplant was designated as a preferred bidder for the Rv555, The Sotra Connection project by the Norwegian Public Roads Administration (NPRA), the Korean contractor said on Sept. 9.

The multinational Sotra Link consortium, owned by Australia’s Macquarie, SK ecoplant and Italy’s Webuild, are participating in the project.

SK ecoplant has taken a 20 percent stake in the consortium. Sotra Link will build and operate the link for 25 years.

The project calls for building and improving a four-lane, 10-km-long road in both directions, connecting Bergen, the second largest city in Norway, and Øygarden.

The project includes a 960-meter-long suspension bridge and four tunnels, measuring 4.4 km in combined length.

When the project is completed, it is expected to greatly ease traffic congestion in the Bergen area. The project costs about $2.2 billion, the largest single contract being awarded by Norway.

SK ecoplant, Spain’s FCC and Webuild will form a construction consortium responsible for engineering, procurement and construction (EPC). SK ecoplant owns a 30 percent stake.

An agreement and a financial deal on the project are expected to be signed in the first half of next year. Sotra Link will operate the link for 25 years from 2027 when it opens to traffic.

NPRA will pay 60 percent of the construction costs during the construction period in form of a construction subsidy and the remainder will be paid as a monthly determined income via the availability payment during the operation of the road.

SK ecoplant President Ahn Jae-hyun said, “With the project, we’re pleased to enter the Northern European market anew following its entry in Western Europe.”

SK ecoplant will create diverse business opportunities with global contractors and financial investors by capitalizing on differentiation technologies and experiences on the execution of projects, he added.

Joo Yang-gyu, head of SK ecoplant’s Plant Engineering Business, KDHEC Executive Vice President Kim Ho-gi and Doosan Heavy Industries Senior Executive Vice President Park Hong-wook sign an MOU on the implementation of divergent community energy business using eco-friendly hydrogen gas turbine via a teleconference system on Sept. 14. (Photos: SK ecoplant)

SK ecoplant Leads Eco-Friendly Energy Business with Hydrogen Technology

SK ecoplant, which has declared its commitment of ramping up ESG with a focus on eco-friendliness and new energy businesses, is accelerating efforts to achieve carbon neutrality and reinvigorate the hydrogen industry.

SK ecoplant sealed an MOU on the implementation of divergent community energy business using eco-friendly hydrogen gas turbine with Korea District Heating Engineering Co. (KDHEC) and Doosan Heavy Industries on Sept. 14.

An off-line signing ceremony was not held due to the effects of the COVID-19 pandemic.

An on-line signing ceremony took place instead in which Joo Yang-gyu, head of SK ecoplant’s Plant Engineering Business, KDHEC Executive Vice President Kim Ho-gi, and Doosan Heavy Industries Senior Executive Vice President Park Hong-wook signed the agreement via a teleconference.

Participants agreed to stress the necessity of gas turbine power generation using hydrogen, a clean energy, to address greenhouse gas emissions and achieve carbon neutrality by 2050 and collaborate with each other.

Under the deal, SK ecoplant plans to concentrate its capabilities on securing hydrogen supply technology, and hydrogen turbine combined cycle power plant technology, based on its experiences and capabilities related to multiple LNG community energy.

KDHEC plans to come to aid in the whole of the design sector by conducting a business feasibility study.

Doosan Heavy Industries plans to develop 5MW small-sized hydrogen burner and hydrogen turbine technologies and mass produce them.