Samsung C&T set on a $672 mn solar power project in Texas, may build more in US

Samsung C&T Corp., a construction and trading unit of South Korea¡¯s top conglomerate Samsung Group, plans to build a 700 megawatt solar power plant in Texas as it follows up on its coal exit commitment and rides on ambitious green drive in the United States.

According to renewable energy investment plan documents of foreign companies in Texas obtained exclusively by Maeil Business Newspaper on Sunday, Samsung C&T submitted a plan to build a 700 megawatt solar farm in Milam County in Texas that can power 200,000 households.

Under the 750 billion won ($672.3 million) investment scheme, Samsung C&T will build farms across three zones – Ben, Milam, and Solar – on total area of 21.8 million square meters.

In December last year, Samsung C&T was promised of tax exemptions for its economic contribution from the Texas state.

Samsung Solar Energy, the local subsidiary of Samsung C&T, plans to engage in steps such as project development, securing land for the solar power plant, receiving approval, and signing power purchase agreements. It is also considering project sales before construction begins.

Once construction of the solar power plant is complete, Samsung C&T will court companies like Tesla and Facebook that operates facilities and data centers in Texas as new customers. Commercial operations of the plant are expected after December 2023.

The location of one of the three solar power plant zones of Samsung C&T in Milam County, Texas, 85 miles away from Samsung Electronics¡¯ chip plant in Austin. [Photo provided by the State of Texas]

Milam County is 85 miles away from Samsung Electronics¡¯ chip plant in Austin. Samsung C&T has not entered detailed negotiations with Samsung Electronics to power the fab that suffered its first shutdown from extreme weather conditions earlier this year.

Samsung C&T in October last year declared to exit coal business as the first in the industry and stop engaging in coal-powered generation projects in any form such as investment and construction. Its trading unit also plans to gradually halt coal trading that amounts to 5.5 million tons per year.

The ESG committee under Samsung C&T also recently decided to sell part of its shares in Qurayyah independent power plant in Saudi Arabia to a local entity.

Samsung C&T has been expanding its footprint in North America based on its renewable energy business experience in Ontario, Canada. The company hopes to expand solar power business in other U.S. states like Georgia and Illinois this year.

Samsung C&T said that it is putting out efforts to continue its environmentally-friendly management while at the same time improve social contributions and develop next-generation profit source.

Shares of Samsung C&T closed 2.21 percent higher at 138,500 won on Monday.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]