The power equipment corporation BH is expected to continue its winning streak in contracting liquefied natural gas (LNG) combined cycle power plants and nuclear power plants this year, following success last year. This is because several gas power projects are being promoted in the Middle East, and additional orders for nuclear power equipment are planned both domestically and internationally, creating a favorable business environment.
According to the industry on the 9th, BH signed power equipment supply contracts totaling 1.48 trillion won last year. This figure represents an increase of about 3.6 times compared to the total order amount of 409 billion won in 2023 and is the largest scale since the company's founding in 1998.
BH entered into a total of eight large-scale heat recovery steam generator (HRSG) supply contracts last year in countries including Japan, Saudi Arabia, and Kuwait, in addition to South Korea. An HRSG is a key device that recovers waste heat generated by gas turbines in LNG combined cycle power plants and produces high-temperature, high-pressure steam to drive a steam turbine in a secondary process. BH began its HRSG business in 2005 after obtaining a production license from an overseas company and fully acquired the core technology in 2020.
LNG combined cycle power plants have high thermal efficiency and produce more energy than conventional fossil fuel power plants. Due to these advantages, they serve as a bridge to the renewable energy generation stage, and global demand is increasing. This year, HRSG orders are also expected to continue, particularly in the Middle East. Moon Kyung-won from MERITZ Securities noted, "Saudi Arabia is pushing forward with fast track projects for LNG combined cycle power plants aiming for 20 gigawatts (GW) by the late 2020s, so a significant increase in related orders is expected from 2025."
BH also anticipates new contract signings in the nuclear power sector this year. The company secured contracts worth a total of 100 billion won for three projects last year, which include stainless steel liners (SSLW), containment liner plates (CLP), and containment piping penetrations (CPP) for the Shin Hanul Unit 3 and 4.
In addition, BH has a diverse portfolio of nuclear power equipment. Since the order for auxiliary nuclear power equipment typically spans several years, forecasts suggest that hundreds to thousands of billions of won in additional order opportunities will arise this year.
BH also has strengths in the small modular reactor (SMR) sector, considered a next-generation power source. The company delivered key fuel handling systems and containment building pressure and radiation reduction covers during the development of Korea's initial SMR "SMART." Last year, it also won contracts for auxiliary equipment necessary for building the 70 megawatt (MW) next-generation small nuclear reactor ARA (Advanced Reactor for multi-purpose Applications) being developed by the Korea Atomic Energy Research Institute (KAERI).
A representative from BH mentioned, "It is expected that domestic and international orders will continue to increase next year, focusing on energy sources such as HRSG, nuclear power, and green hydrogen that significantly contribute to achieving carbon neutrality."