SK Ecoplant to jointly develop renewable energy sources with CSCEC

South Korea's construction engineering company SK Ecoplant Co., Ltd. is going to jointly develop overseas renewable energy sources with China State Construction Engineering Corporation (CSCEC), the world's No. 1 construction contractor.

SK Ecoplant said on Thursday that it signed a memorandum of understanding (MOU) with CSCEC the previous day for strategic cooperation in global renewable energy. Established in 1952, the Chinese state-run company is the world's largest construction firm with offices in 77 countries and 370,000 employees.

With the latest deal, the two companies agreed to actively cooperate in the joint development of renewable energy projects in international markets such as Africa and Asia as well as in mainland China.

The Korean company will provide capabilities in renewable energy and green hydrogen technology, and services in business development and project financing, while CSCEC offers strong overseas networks covering 77 countries across the world.

The primary target areas for development are Egypt and China, which are considered to have high potential in the renewable energy sector. Egypt is fast emerging as a green hydrogen-producing country with abundant sunlight, excellent wind conditions, and large territories. In China, the solar power business is expected to grow rapidly centering on rooftop solar power.

"We will preempt the global renewable energy market through the strategic alliance with the world's largest construction company," said Park Kyung-il, CEO of SK Ecoplant.

Write to Ohsang Yoo at osyoo@hankyung.com