HD Hyundai's power equipment and energy solution subsidiary, HD Hyundai Electric, has secured a contract for a battery energy storage system (BESS) in the North American market for the first time. The contract size is 140 billion won. HD Hyundai Electric has been supplying custom energy storage systems (ESS) totaling over 1.6 gigawatt-hours (GWh) since 2016, but this is the first contract won in North America.
HD Hyundai Electric announced on the 4th that it has signed a design, procurement, and construction (EPC) contract for the 200-megawatt-hour (MWh) 'Rutil BESS Project' being carried out in Texas, USA, at the HD Hyundai Global R&D Center located in Bundang, Gyeonggi Province.
The Rutil BESS Project is a power transaction business in Runnels County, Texas, where surplus power is stored in batteries and supplied across Texas when demand arises. The project has been awarded to a consortium consisting of Korea Southern Power (KOSPO), Alpha Asset Management, and KBI Group, with Korea Southern Power assigning the EPC to HD Hyundai Electric. The Rutil BESS Project aims to break ground in the third quarter of this year and is scheduled for completion in the third quarter of 2027.
HD Hyundai Electric has established a subsidiary in Texas on April 1 to actively expand its BESS business and successfully execute this project. Texas has seen a surge in power demand as global big tech corporations such as Apple, Google, Tesla, and Oracle have established large campuses and data centers there. According to data released in June by Fortune Business Insights, a global market research firm, the global BESS market size is expected to grow from $25 billion in 2024 to $114 billion by 2032.
Kim Young-ki, president of HD Hyundai Electric, said, "Starting with this contract, we will strive to take the lead in the global BESS market not only in North America but also in Europe, and we will contribute to the expansion of eco-friendly energy infrastructure and lead the future power market."