LS Cable & System (C&S) won a bid for Korean Electric Power Corp's "Jeju third submarine cable construction project" Thursday, which aims to connect the islands of Wando and Jeju.
The deal is worth 232.4 billion won, making it the company's largest procurement deal since 2009.
LS C&S will connect the islands with high-voltage direct current (HVDC) cables. The company will be in charge of the project from production to construction and the work is scheduled to be completed by late 2023.
The cables consist of two-wire routing to supply energy safely to Jeju Island. The cables are also capable of simultaneously transmitting Jeju Island's renewable energy back to the mainland.
HVDC cables are different from alternating-current (AC) cables and do not emit electromagnetic waves, minimizing the environmental impact.
LS C&S was the sole candidate in the international bidding after its fourth attempt and went through a strict technical evaluation.
There are only five submarine cable companies in the world capable of producing and installing HVDC cables, while LS C&S is the only one in the country with the technical capabilities.
"We have decided to take part in the project not only to produce business results but take responsibility in establishing the country's electric grid," Myung Roe-hyun, CEO of LS C&S said. "We feel a sense of duty and will successfully complete the project."
There have been more countries strengthening renewable energy policies, raising demand for HVDC cables. To better meet demand, LS plans to build a HVDC specialized factory in Donghae city, Gangwon Province. The company believes the new factory will also vitalize the region and increase employment.
Just this year alone, LS C&S has secured large deals in the U.S., the Middle East and Europe and inked a long-term supply contract with the world's largest submarine cable company, Orsted.
LS C&S kicked off its submarine cable business in 2009 and has evolved into one of the world's leading suppliers of submarine cables.
This article is reproduced at www.koreatimes.co.kr