Hyundai E&C, South Australia sign renewable energy, infrastructure deal

South Korea’s Hyundai Engineering & Construction Co. said on Tuesday it has signed a comprehensive deal on cooperation in the renewable energy, infrastructure and housing sectors with the government of South Australia (GOSA).

Hyundai E&C, a unit of Korea’s top automaker Hyundai Motor Group, said the agreement will pave the way for the contractor to enter the southern part of Australia with huge growth potential in the construction business.

The agreement was signed during a visit to Seoul by a South Australian economic delegation, including government officials and business leaders, aimed at expanding cooperation in infrastructure development and new growth industries to help South Australia achieve its carbon neutrality goals.

Joe Szakacs, South Australia's Minister for Trade and Investment, and Choi Young, head of Hyundai E&C's New Energy Business Division, signed the deal at Hyundai’s headquarters in Seoul.

Hyundai E&C said it and the GOSA will explore specific cooperation measures in areas such as renewable energy, including hydrogen, infrastructure development and housing construction.

CARBON NEUTRALITY BY 2027

As of 2023, South Australia generates 74% of its electricity from renewable energy sources. The government aims to achieve carbon neutrality by 2027 and 100% renewable energy use by 2030.

To support this, the government of South Australia has introduced a hydrogen and renewable energy law to simplify regulatory procedures for hydrogen projects. The government is pushing for renewable energy projects worth 21 billion Australian dollars (US$14 billion).

Based on the partnership, Hyundai E&C aims to establish a collaborative framework with the government of South Australia in various sectors, including next-generation energy projects such as hydrogen, solar power, offshore wind and power grids.

Given South Australia's rapid population growth, the Korean company said there is also an increasing need to improve infrastructure such as transportation networks, schools, hospitals and housing,

In April, Hyundai E&C set up a branch office in Sydney as part of its efforts to enhance its presence in Australia.

NET ZERO 2050 POLICY

Driven by its Net Zero 2050 policy, South Australia is actively pursuing renewable energy-related construction projects and large-scale infrastructure investments.

Hyundai E&C said its globally recognized engineering, procurement and construction (EPC) expertise will contribute to the GOSA implementing its policy.

“We expect our collaboration with the South Australian government to act as a catalyst for innovation in Australia's energy infrastructure,” said a Hyundai E&C official.

Write to Eun-Ji Shim at summit@hankyung.com

In-Soo Nam edited this article.