South Korean Power Equipment Firms Target Europe with Eco-Friendly Technology

The global power equipment market is undergoing a significant transformation, driven by the twin forces of renewable energy expansion and the burgeoning demand fueled by artificial intelligence. As grids worldwide require substantial upgrades, the need for essential components like transformers and circuit breakers surges. Hankyoreh reports that South Korean companies are not merely participating in this growth but are strategically positioning themselves at the forefront by embracing 'eco-friendly' solutions.

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The trend in the power equipment market is 'eco-friendly.' Transformers using plant-based and synthetic ester insulating oils are in high demand from European customers, and we expect demand to increase not only in Europe but also in the Middle East.

European markets, in particular, are leading the charge with stringent environmental regulations. The EU's impending ban on sulfur hexafluoride (SF₆) in high-voltage circuit breakers above 145 kilovolts by 2032 is a major catalyst. SF₆, a potent greenhouse gas with a global warming potential 23,500 times that of carbon dioxide, is being phased out. Companies like HD Hyundai Electric have already achieved final approval for their SF₆-free circuit breakers, with plans to introduce higher-voltage models and secure long-term supply contracts in Europe. Hyosung Heavy Industries is also making strides, developing similar SF₆-free alternatives using dry air.

Beyond circuit breakers, the focus extends to transformers, where the adoption of alternative insulating oils is gaining momentum. These eco-friendly oils, derived from plant-based or synthetic esters, offer lower toxicity and better biodegradability compared to traditional mineral oils, reducing environmental impact in case of leaks. They also boast higher flashpoints, mitigating fire risks. Hyosung Heavy Industries has pioneered the development of 345-kilovolt reactors using these alternative oils and has secured over 300 orders for eco-friendly transformers, including shipments to the UK. HD Hyundai Electric has also completed final approval tests for a 400-kilovolt, 460-megavolt-ampere class transformer utilizing alternative insulating oil, marking a significant capacity milestone for domestically produced eco-friendly equipment.

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This is a preemptive measure to respond to the strengthening regulations on fluorine-based greenhouse gases. According to industry sources, revisions to relevant EU regulations will prohibit the use of SF₆ gas in high-voltage circuit breakers exceeding 145 kilovolts starting in 2032.

LS Electric is also contributing to this green transition by replacing halogenated materials in insulation components with self-developed non-halogenated alternatives. This move aims to reduce harmful and corrosive gases emitted during fires or disposal. While Western media might focus on the technological advancements, for South Korean industry, this pivot represents a crucial competitive advantage. By proactively addressing environmental concerns and investing in sustainable technologies, these companies are not only complying with regulations but are also carving out a significant niche in a rapidly evolving global market, ensuring their relevance and profitability in the coming decades.

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We are discussing long-term supply contracts with European customers, and we expect future orders and sales to expand.