Starting with its participation in the new-build investment for the Niles gas combined-cycle power plant in Michigan in 2019, DL Energy has continued to expand its entry into the U.S. power market. DL Energy is currently the only private energy developer in Korea that invests in and operates gas combined-cycle power plants in the United States.
The Niles gas combined-cycle plant, with a generation capacity of 1,085 MW, is the first case in which the company participated directly from the development stage through construction and commercial operation. In 2022, DL Energy expanded its business by acquiring equity in the 1,055 MW Fairview gas combined-cycle power plant in Pennsylvania. Based on their high generation efficiency, the two plants are recognized as top-tier power suppliers by U.S. power exchanges and are maintaining stable operations and profitability.
DL E&C, which handles construction within the group, has been expanding into SMR design since signing a contract for "Small Modular Reactor (SMR) standardization design" with X-energy on Mar. 25. Standardization of SMRs, regarded as next-generation nuclear power, is the design that forms the backbone of SMR construction and specifies how each facility within a plant will interconnect and operate. DL E&C is the first Korean builder to carry out standardization design directly. Through its strategic partnership with X-energy, DL E&C plans to lead the 4th-generation SMR market.
X-energy holds 4th-generation SMR technology that uses helium gas as a coolant, unlike existing light-water reactors that use water as a coolant. The completed design is expected to be applied across follow-up projects starting with the first unit slated to begin operation in 2030. Based on Amazon's investment and cooperation in 2024, X-energy is pushing to introduce 5 GW of SMRs, and last year it signed a joint development agreement with British energy corporations Centrica for 6 GW of nuclear development.
According to the National Nuclear Laboratory (NNL) in the United Kingdom, the global SMR market will reach 85 GW, or 300 units, by 2035, and is projected to amount to $500 billion (about 753 trillion won). DL E&C plans to secure a lead in the global SMR market together with its strategic partner X-energy.
Meanwhile, DL E&C is also strengthening its foothold in ammonia, which is drawing attention as a future alternative energy source. It won back-to-back orders and successfully completed the Ma'aden ammonia plant in Saudi Arabia, the world's largest ammonia production facility. In the transition to a clean hydrogen economy, ammonia is expected to serve as a key carrier. DL E&C is reinforcing its foundation to respond to the future energy market by partnering with global licensors and building partnerships related to hydrogen-to-ammonia conversion technology.