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Hyosung Heavy Industries Leading the Way in Renewable Power Grids in Europe

Hyosung Heavy Industries Leading the Way in Renewable Power Grids in Europe

2024.12.21
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Countries around the world are ramping up their investments in power grids. The rapid increase in data centers, which manage large volumes of data driven by the spread of artificial intelligence (AI) technology, is a major reason. These data centers, which require stable power supply around the clock, are fueling growth in the power equipment industry. In addition, many countries are entering a period of replacing aging power grids and expanding large-scale renewable energy facilities, further driving demand for power equipment. Seizing this opportunity, Hyosung Heavy Industries is making a bold entry into the global market to increase its market share. 


Hyosung Heavy Industries' Remarkable Progress in the Global Market 


Power equipment requires high levels of technical stability, making certification stringent and creating high entry barriers. As the leader in the domestic market, Hyosung Heavy Industries has leveraged its extensive know-how to earn recognition for quality in the global market. Anticipating a future focused on carbon-reducing energy, Hyosung Heavy Industries has secured key technologies related to future power grid systems and renewable energy, such as the IT-based power facility Asset Remote Management system for Operational Utility’s Reliability (ARMOUR)*, High Voltage Direct Current transmission (HVDC)**, and STATic synchronous Compensator (STATCOM)***


*ARMOUR(Asset Remote Management system for Operational Utility’s Reliability): A next-generation total management solution for power equipment, integrating internet-based information technology and power equipment operation technology. 


**HVDC(High Voltage Direct Current transmission): HVDC transmission technology enhances the efficiency and stability of long-distance power transmission between regions while minimizing electromagnetic interference, resulting in reduced environmental impact. This technology complements the production and supply of renewable energy, which is significantly affected by weather conditions. HVDC also allows for the efficient long-distance transport of electricity generated by power plants, enabling the power produced by wind and solar farms to be effectively delivered to urban areas. 


***STATCOM(STATic synchronous Compensator): Equipment that uses power electronics technology, stabilizing fluctuating voltages during the transmission and distribution processes. It maintains consistent output voltage even when generating renewable energy sources like wind and solar power, which can experience rapid voltage changes due to weather conditions, ensuring a stable supply of electricity. 


Hyosung Heavy Industries operates overseas production bases in the US, India, and China, allowing it to respond flexibly to changes in the external environment. The company has built trust and established its position as a partner with major power companies in the US, Australia, Japan, and other global markets based on its quality and technological competitiveness. The export value of Hyosung Heavy Industries' heavy industries (power equipment) division in the first half of last year was KRW 449.1 billion, a 155.6% increase from KRW 175.7 billion in the first half of 2022. The proportion of exports in total sales also surged from 25.2% in 2022 to 44.3% in 2023. 


Hyosung Heavy Industries' Technological Prowess Driving Success in the European Market 


With its technological prowess and system design, operation, and continuous solution provision capabilities, Hyosung Heavy Industries has been steadily knocking on Europe's door for over a decade. In 2010, it became the first Korean company to be selected as the main supplier of ultra-high voltage transformers by the UK's National Grid, marking its official entry into the European market. In 2020, Hyosung secured a contract with, Svenska kraftnät, Sweden's state-owned power company for ultra-high voltage circuit breakers. The following year, the company signed a large-scale ESS supply contract with Downing, a UK power investment and development company, for the Southampton area. These milestones have significantly increased Hyosung Heavy Industries' market share in Europe. 


Hyosung Heavy Industries signed a contract for supplying ultra-high voltage transformers to Norwegian Transmission Company

▲ Hyosung Heavy Industries signed a contract for supplying ultra-high voltage transformers to Norwegian Transmission Company  


A recent example is the successful contract with Norway's state-owned transmission company, Statnett, in November 2023 to supply 420kV ultra-high voltage transformers. This KRW 100 billion worth contract is the largest single transformer supply deal in history. Hyosung Heavy Industries is responsible for designing, transporting, installing, and commissioning the ultra-high voltage transformers. As Norway is the largest electricity and energy exporter in Europe, supplying power through its grid to the UK, Germany, the Netherlands, Denmark, and across Europe, this contract is a significant opportunity to showcase Hyosung Heavy Industries' renewable energy technology. 


The background to Hyosung Heavy Industries' outstanding success in the European market includes the global pandemic that shook the entire market. The pandemic was a challenging time for all related companies worldwide, including Hyosung Heavy Industries. However, as the "post-COVID" era began, the power market recovery and the expansion of renewable energy development progressed rapidly, providing a prepared company like Hyosung Heavy Industries with an opportunity to advance in the European market. The surge in power demand, coupled with the crisis in Ukraine, highlighted supply chain issues within Europe, prompting European customers to look outside the continent for manufacturers. Hyosung Heavy Industries' high-level technical capabilities in designing and manufacturing ultra-high voltage transformers, along with their flexible customer response abilities, have driven more European clients to choose Hyosung Heavy Industries as their preferred partner. 


Let's take a closer look at the technologies that have earned Hyosung Heavy Industries high praise in the European market. 


Biodegradable Ester Oil Transformer Technology: With the increasing demand for carbon reduction, even the transformer industry is affected, and Europe is no exception. Hyosung Heavy Industries has secured biodegradable ester oil transformer technology since 2015. In 2022, they developed and successfully delivered the first domestic 400kV biodegradable ester oil transformer, meeting the needs of European customers effectively. 


Explosion-Proof Technology: European customers prioritize safety and environmental protection, necessitating multiple layers of technology to prepare for transformer accidents. Hyosung Heavy Industries has enhanced the accuracy of dynamic explosion-proof design technology to verify vulnerabilities in transformer tanks, ensuring they are well-prepared for explosion incidents. This approach secures stability and prevents over-engineering of external enclosures, producing products that meet Europe's stringent transportation regulations. Additionally, Hyosung Heavy Industries is conducting empirical tests on mineral oil and biodegradable ester oil transformer tanks to validate explosion-proof design and analysis technologies, thereby ensuring product reliability. 


Hyosung Heavy Industries conducts soundproof chamber structure verification tests for low-noise technology development

▲ Hyosung Heavy Industries conducts soundproof chamber structure verification tests for low-noise technology development 


Low-Noise Technology: Many power stations and substations in Europe are located near urban areas, making noise control critical. In some cases, the environmental impact assessments are conducted during the substation design phase, guaranteeing the noise levels of transformers by limiting them within specified thresholds considering these assessments. Hyosung Heavy Industries is developing various noise reduction technologies beyond conventional passive methods, analyzing vibrations of internal structures and external tanks of ultra-high voltage transformers, and actively controlling noise sources through reinforcement and vibration insulation. 


Geomagnetically Induced Current (GIC) Analysis Technology: Power grids in northern Europe, close to the polar regions, are significantly affected by geomagnetically induced current (GIC). Particularly, leakage flux (magnetic induction) caused by core saturation penetrates nearby iron structures, leading to overheating. This can result in internal damage and the generation of flammable gases, causing severe damage to transformers. Hyosung Heavy Industries conducts integrity assessments of transformer cores, windings, and iron structures based on equivalent circuit analysis technology to meet European customer specifications regarding GIC. 


The variable reactor developed by Hyosung Heavy Industries

▲ The variable reactor developed by Hyosung Heavy Industries  


Variable Shunt Reactor (VSR) Technology: In the European market, where renewable energy generation is on the rise, the demand for variable shunt reactors (VSR), which can effectively compensate for reactive power, is expected to grow. Hyosung Heavy Industries developed and delivered South Korea's first 345kV standard VSR to Korea Electric Power Corporation (KEPCO). Additionally, the company's proven expertise in VSR design, demonstrated through its successful deliveries of high-quality, low-noise VSRs to the United States, Australia, and Saudi Arabia, is now forming the basis for ongoing discussions with European customers. 


Phase Shifting Transformer (PST) Technology: A Phase Shifting Transformer (PST) is connected in series with transmission lines to adjust the voltage phase angles at both ends, thereby controlling the active power (power flow) through the line. PSTs require less installation space and have a simpler structure, allowing for more economical operational stability and efficiency in power transmission networks. Hyosung Heavy Industries has developed a 330kV PST and delivered it to the Australian market. Building on this achievement, the cmopany is now expanding its presence in the European market. 


Hyosung Heavy Industries provides the best-suited transformers for each site, tailored to meet customer needs

▲ Hyosung Heavy Industries provides the best-suited transformers for each site, tailored to meet customer needs 


Safe External Structure and Universal Function Transformers: European customers prioritize site safety when operating ultra-high voltage transformers. They often require the installation of large transformers in building structures and the inclusion of safe access facilities such as stairs and platforms. Hyosung Heavy Industries has a proven track record of delivering building-structured transformers to meet the requests of customers in the UK and France, ensuring satisfaction by understanding and adhering to specific safety requirements. Additionally, given the high variability in power consumption and the frequent relocation of transformers in the European market, Hyosung Heavy Industries has developed universal transformers that can adapt to various voltages, power system connections, installation locations, and structural changes, effectively meeting market demands. 


This is Just the Beginning! Hyosung Heavy Industries Targets the European Market 


As global demand for sustainable energy surges, including in Europe, Hyosung Heavy Industries has been focusing on developing power equipment aligned with global trends. Since 2022, the company has been working on establishing a European R&D center. Located in Arnhem, an industrial city in eastern Netherlands, about 30 researchers have been stationed there this year to conduct research related to power equipment, demonstrating Hyosung Heavy Industries’ commitment to securing technological capabilities in the European market. 


By focusing on local activities, Hyosung Heavy Industries increases its contact with key customers and continuously listens to and improves upon customer needs based on VoC (Voice of Customer). Expanding beyond traditional ultra-high voltage transformers and circuit breakers, the company is also moving into solution-based products like ESS (Energy Storage Systems) and STATCOM (Static Synchronous Compensators). This transition positions Hyosung Heavy Industries not just as a 'Product Supplier' but as a 'Solution Provider' that addresses customer needs and challenges. Engaging with customers globally to provide optimal solutions, Hyosung Heavy Industries is poised to lead the development of sustainable power equipment in Europe, the home of the power industry, while advancing in the global market, which is increasingly centered around renewable energy. 

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