Doosan commits to building wind farms and a hydropower plant, will sell 121 million shares to pay debts

Doosan, a world leader in construction and power plants, recently entered into partnerships with two Korean power companies to develop new energy systems. In one case, its Heavy Industries & Construction company will join Korea South-East Power Company (KOEN) in constructing and promoting offshore wind farms. The two just signed a memorandum of understanding (MOU) outlining their intended cooperation.

As Business Korea reports, KOEN is at work on wind farms in Gyeongin and Jeju Island. It is also developing floating offshore wind power systems and complexes in the megawatt class. Doosan has committed to assisting KOEN in these projects. On the other hand, KOEN will lend its technology and expertise to help Doosan commercialize an offshore wind turbine it is currently manufacturing. It will be Korea’s largest at 8MW; Doosan hopes to have it commercialized by 2022.

The country’s first 3MW offshore wind turbine was also made by Doosan; it was internationally certified in 2011. A second, larger (5.5MW) turbine, also developed by Doosan, received international authorisation in July 2019.

Park In-won, CEO of Doosan Heavy’s Plant EPC Business Group, said the agreement with KOEN is a promising sign for the future of renewable energy.

“This MOU should enable us to commercialize domestic offshore wind turbines by securing large-scale references,” he said. “We will cooperate with KOEN to revitalize the wind power industry in Korea to keep ourselves aligned with the Korean government’s Green New Deal policy.”

In other news, Doosan Heavy Industries & Construction announced it will sell 1.2 trillion won (1.1 billion USD) of its shares to help settle its debts. Yonhap News reports that the company’s short term debts total 4.2 trillion won. As they’re due this year, the sell-off—121 million shares at 9,980 won each—will take place on Christmas Eve. I’d buy a share or two myself, but I can hardly afford to purchase a new cashmere sweater at the moment.

Doosan Heavy Industries & Construction is also teaming up with Korea Western Power (KWP) to build a hydropower plant in Laos. According to a MOU recently signed by both parties, Doosan and KWP will collaborate on the development of the plant and the manufacture of equipment. They will also work together on promoting, selling and exporting the resulting products.

The project, which will begin next year and be finished by 2029, is valued at 2.4 billion USD.

Jeffrey Boyle

Jeffrey Boyle is from Madison, Wisconsin, where he obtained his bachelor's degree in business communications. When he's not reading or writing about construction equipment and machinery, he can probably be found walking--or being walked by--his three Boston Terriers.

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