BHI secures $150mn contract for Saudi Arabia’s power plant project

[Courtesy of BHI Co.]

BHI Co., a major power equipment supplier in South Korea, has signed a $150 million contract for the supply of heat recovery steam generators (HRSG) for Saudi Arabia’s largest combined-cycle power plant construction project.

The agreement, announced on Wednesday, is part of the SEPCO-3 project led by Shandong Electric Power Construction Corp.

Under the contract, BHI will provide a total of six 600 MW HRSGs for the combined-cycle power plants that are being constructed in the Taiba and Qassim regions of Saudi Arabia.

The Taiba and Qassim power generation project involves the construction of six 3,600 MW liquefied natural gas (LNG) combined-cycle power generators, making it a colossal project with a total cost of $8 billion.

HRSG plays a crucial role in combined-cycle power generation by recovering exhaust heat from gas turbines to run steam turbines, contributing to environmentally friendly power generation, especially in achieving carbon neutrality and is considered an essential component of such facilities.

BHI holds the core technology for HRSG and is the only company in Korea with a proven track record of commercial operation for large-scale HRSGs exceeding 500 MW.

The company has recently signed a 47.5 billion won ($35.7 million) contract with Daewoo Engineering & Construction Co. for the supply of a 550 MW HRSG, which will be installed at the Gwangju City Natural Gas Power Plant in South Chungcheong Province in Korea.

Recently, KEPCO launched the Gongju Natural Gas Power Plant Construction Project, which aims to replace the aging coal-fired Unit 2 power plant in Taean-gun, South Chungcheong Province, with new natural gas power generation.

In this project, BHI will be responsible for supplying HRSGs as well as condensers, one of the auxiliary equipment (BOP). Once the contract is finalized, the revenue from the project is expected to reach 50 billion won.

The latest series of large-scale business wins have allowed BHI to secure nearly as much revenue as last year’s annual sales.