DL E&C won order for the Dongjeju Combined Power Plant Project.
DATE 2026.06.15
VIEW 62
“We will be at the forefront of transitioning to eco-friendly energy.”
DL E&C won order for the Dongjeju Combined Power Plant Project.
- Construction of a power plant capable of transitioning to ‘clean hydrogen generation’: demonstrating over 70 years of plant engineering expertise
- Application of advanced work packaging (AWP) to maximize efficiency and productivity
- Contributing to the stabilization of Jeju’s power grid and expecting to play a role in supplying eco-friendly energy
DL E&C has secured a contract worth KRW550 billion to independently construct a gas-fired combined cycle power plant in Jeju. The project is being recognized as a testament to the Company’s competitiveness in the eco-friendly energy sector, as the plant is designed to transition to clean hydrogen power generation in the future.
DL E&C announced on the 15th that it has signed the contract for ‘the Construction of Dongjeju Combined Cycle Power Plant’. The signing ceremony, held last week at Korea East-West Power’s headquarters in Ulsan, was attended by Park Sang-Shin, CEO of DL E&C, and Kwon Myung-Ho, President of Korea East-West Power, along with executives from both companies.
The project involves constructing a 150MW gas-fired combined cycle power plant in Dongbok-ri, Gujwa-eup, Jeju. Commissioned by Korea East-West Power, DL E&C will execute the entire project on an EPC (Engineering, Procurement, and Construction) basis, including commissioning. Completion is scheduled for 2030, after which the plant is expected to contribute significantly to the stability of the power supply in the Jeju region.
DL E&C’s more than 70 years of experience in construction of power plant and its deep understanding of the Jeju region served as the background for winning this contract. In particular, the Company’s basic design capabilities, which can enhance “power generation efficiency” —the core of a power plant’s competitiveness- are pointed out as a key strong point. Unlike most domestic contractors, DL E&C possesses its own basic design capabilities. The Company precisely analyzed the performance characteristics of the gas turbine, steam turbine, and heat recovery steam generator (HRSG), which are the core facilities of the East Jeju Combined Cycle Power Plant, and then proposed an optimized design. This enables the plant to maintain high fuel efficiency not only during peak-load operation when electricity demand is higher, but also under partial-load conditions when electricity demand is lower.
The Dongjeju Combined Cycle Power Plant will also incorporate Advanced Work Packaging (AWP), a smart project management methodology that subdivides every stage of a project—from engineering and procurement to construction and commissioning—and integrates and manages it into a standardized digital platform. AWP ensures that necessary resources are prepared in advance and potential workflow disruptions are eliminated before construction begins, thereby improving efficiency and productivity. According to research by the Construction Industry Institute (CII) in the United States and the Construction Owners Association of Alberta (COAA) in Canada, AWP can improve productivity by up to 25% while reducing construction costs by up to 10%. DL E&C introduced this method for the first time in Korea 2021 to expand DL Chemical’s Yeosu No. 2 Plant.
Due to Jeju’s geographical characteristics as an island, constructing power plants in Jeju presents additional challenges compared to mainland projects, as large turbines and major equipment must be transported by sea, and construction schedules must accommodate changing weather conditions. DL E&C has successfully completed Unit 2 of the Jeju Internal Combustion Power Plant in 2009, and already demonstrated its capability in this environment.
As part of its “Carbon-Free Island” initiative, Jeju is rapidly increasing the share of renewable energy in its power generation mix to replace fossil fuels. Renewable energy currently accounts for approximately 20% of the island’s power generation—the highest proportion among Korea’s local governments. However, the intermittent nature of renewable energy, caused by weather and time-of-day fluctuations, remains a key challenge.
To address this issue, the new power plant will be equipped with a synchronous condenser, which helps supply or absorb reactive power to maintain stable voltage levels in order to stabilize the power grid
The project will also introduce hydrogen-ready gas turbines, allowing the facility to transition to clean hydrogen power generation in the future. Through this, the plan is to convert the facility into a clean hydrogen power plant capable of producing the same level of electricity as existing power plants. Hydrogen power generation is attracting attention as an alternative technology that can drastically reduce carbon dioxide emissions by utilizing existing power facilities. This means that “clean electricity” generated from hydrogen will be supplied.
“Eco-friendliness” has become one of the most important topic in the energy industry. The Korean government proposed a great energy transition toward renewable energy as a national agenda. Under the 11th Basic Plan for Long-Term Electricity Supply and Demand, the government sets a goal to increase hydrogen and ammonia-based power generation to 43.9 TWh (terawatt-hours) by 2038.
The Dongjeju project further accelerates DL E&C’s energy transition strategy, following the Company’s SMR (Small Modular Reactor) standard design agreement with X-energy signed in March. DL E&C is also carrying out several major power generation projects, including the construction of the S-Oil’s combined heat and power plant, the modernization projects for Bucheon Cogeneration Plant, and Bundang Combined Cycle Power Plant. The Company is being evaluated as continuing to achieve results in sustainable, eco-friendly business sectors, moving away from coal-based thermal power generation.
Yoo Jae-Ho, Head of the Plant Division at DL E&C, said, “Transition to clean hydrogen power generation is an economical low-carbon power solution that minimizes plant downtime while reducing costs compared to constructing entirely new facilities. We will combine the trust we have built through decades of plant engineering expertise with future technologies such as hydrogen, to pursue expanding our project portfolio.”
Kwon Myung-ho, President of Korea East-West Power, added, “Following the Eumseong Natural Gas Power Plant, it is especially meaningful to take a successful first step toward another key project that will shape our company’s future in Jeju. We will work together with DL E&C to do our utmost in order to construct a top-quality power plant that provides stable and clean energy to the residents of Jeju.”
Photo Caption:
DL E&C signed the contract for the construction of Dongjeju Combined Cycle Power Plant with Korea East-West Power on the 11th. Park Sang-Shin (left), CEO of DL E&C, and Kwon Myung-Ho, President of Korea East-West Power, pose for a commemorative photograph at the signing ceremony held on that day.
