Samsung C&T, declared coal-free, sees opportunities as it enters the US new and renewable energy business

It is expected that Samsung C&T will further increase eco-friendly businesses such as new and renewable energy with the’declaration of coal-free coal’.

Samsung C&T is engaged in wind and solar business in Canada, and US President-elect Joe Biden is expected to see an opportunity to enter the US by proactively investing in renewable energy generation.

▲ Lee Young-ho, CEO of Samsung C&T’s construction division.

According to the securities industry on the 29th, many gazes are positive over Samsung C&T’s decision to declare coal-free, which includes the suspension of new coal-related businesses, the completion of existing businesses, and the sequential withdrawal of contracts.

Samsung C&T’s declaration of coal-free coal could take a toll on coal power-related partners, but instead, expanding the new and renewable energy business could provide a desirable structure in terms of Samsung C&T’s new business portfolio.

Han Byeong-hwa, a researcher at Eugene Investment & Securities, analyzed that “Samsung Group is expected to invest in new and renewable energy through Samsung C&T,” and said, “The possibility of securing additional sustainable growth engines following the bio business through subsidiaries has also opened up.”

The US is regarded as a market in which Samsung C&T can pursue its new and renewable energy business in earnest.

This is because a large-scale wind and solar power generation complex has been completed and operated in Canada, which is considered to have a foundation for entry into the United States.

Samsung C&T completed a 1396 MW large-scale wind and solar power complex in Ontario, Canada in 2018, and will supply the electricity it produces for 20 years to the Ontario Electricity Authority by 2038.

In 2017, it completed the construction of a solar power complex in Summerside, Canada, and gained experience in construction and operation of new and renewable energy projects in North America.

Samsung C&T is making efforts to establish Samsung Solar Energy, a special purpose corporation (SPC) and promote the US solar power business. If Biden-elect takes office as President of the United States, the business opportunities are expected to increase.

As an environmental pledge, President-elect Biden announced that he will make large-scale investments in new and renewable energy projects, saying, “By 2035, we will reduce US greenhouse gas emissions from electricity generation to zero and strengthen the international community’s leadership in climate change.”

Biden-elect also made a specific plan to install 5 million solar panels and 60,000 wind turbines by investing 2 trillion dollars (2224 trillion won) in the new and renewable energy business over the four years after taking office as President.

An official from Samsung C&T said, “With the increase in investment in new and renewable energy in the United States, opportunities for business expansion may increase,” he said. “We will actively enter the new and renewable energy business both at home and abroad, not limited to specific regions.”

On October 27, Samsung C&T declared that it was the first domestic non-financial company to completely suspend new coal-related businesses and withdraw its existing businesses sequentially upon completion and termination of the contract.

The construction of the Gangneung-an-in thermal power plant and the Vung Ang-2 coal-fired power plant in Vietnam, which is scheduled to participate, will be constructed by raising environmental standards, and the eco-friendly business portfolio will be expanded to include new and renewable energy and liquefied natural gas (LNG) complex thermal power plants.

Subsequently, subsidiaries of the Samsung Group also announced eco-friendly performances and plans one after another.

Two days after Samsung C&T’s declaration of coal-free coal, Samsung Electronics announced its 3Q results and announced that it would increase investment in environmental, social, and governance (ESG). In addition, Samsung Electronics’ Hwaseong plant announced that it has obtained organizational unit environmental certification for the first time in the semiconductor industry from the British eco-friendly certification body’Carbon Trust’.

Samsung’s financial affiliates, such as Samsung Life Insurance and Samsung Fire & Marine Insurance, also announced on November 12 that they would reinforce their coal-free investment policies by stopping investments in coal power plants or taking insurance. [비즈니스포스트 장상유 기자]



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