Samsung C&T to build two solar power plants in Qatar

Industry

Samsung C&T to build two solar power plants in Qatar

Published: 24 Aug. 2022, 18:21 Updated: 24 Aug. 2022, 19:05

Oh Se-chul, second from left, Samsung C&T CEO, and Saad Sherida Al-Kaabi, third from left, QatarEnergy CEO, pose for a photo during a signing ceremony held in QatarEnergy headquarters in Doha. [SAMSUNG C&T]

Samsung C&T landed a $630-million deal to build solar power plants in Qatar.

The construction company on Wednesday said that it signed an engineering, procurement and construction (EPC) contract with state-run QatarEnergy. As exclusive contractor for the project, Samsung C&T will build two solar power plants in Qatar with a combined capacity of 875 megawatts.

A 417-megawatt solar farm will be built in Mesaieed, about 40 kilometers (25 miles) south of Doha, and a 458-megawatt farm will be built in Ras Laffan, 80 kilometers north of Doha. About 1.6 million solar panels will be installed at the sites, with the land areas totaling 10 square kilometers.

Samsung C&T plans to break ground in September and complete construction by November 2024. The solar power plants will supply electricity for QatarEnergy's industrial complexes in the cities and to the country's power grids.

The company is currently working on a 2.4-trillion-won ($1.8-billion) project to build a liquefied natural gas (LNG) terminal in Qatar and has experience in building a 2.5-trillion-won water desalination plant.

"Samsung C&T came to be recognized as a global player in the renewable energy generation sector," said a spokesperson for the company. "We hope to expand our value chain, from construction to business participation and operation."

In 2020, Korea Electric Power Corp. signed a contract to build and operate a solar power plant in Guam, with Samsung C&T as the builder. Samsung C&T recently completed the construction of a 60-megawatt power plant and an energy storage system in Mangilao, Guam.

On Wednesday, Samsung C&T traded at 123,000 won, up 3.36 percent compared to the previous day.

Last year, Samsung C&T signed $7 billion of overseas contracts, including the LNG deal in Qatar, according to the International Contractors Association of Korea. The company topped the list among Korea's construction companies in overseas performance that year.

The company is diversifying its business portfolio into the future energy endeavors, such as solar power, hydrogen and nuclear energy. Samsung C&T has invested $70 million in Portland, Oregon-based NuScale, which specializes in small nuclear reactors.

In January, the company signed a memorandum of understanding with Posco and Saudi Arabia's Public Investment Fund to collaborate on a green hydrogen production project in the Middle East country.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]