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This is a prototype of Hyundai’s hybrid car aimed at cleaner emissions and fuel efficiency. / Coutresy of t Hyundai Motor |
By Kim Hyun-cheol
Staff Reporter
Korean companies are turning their attention to the development of alternative energy to substitute for fossil fuel in the midst of surging global oil prices.
While electronics and heavy industries look to muscle into the solar energy business, automakers are in full swing developing hybrid vehicles. Refineries here are also seeking to create funds for alternative energy.
Several leading companies are making fast moves to make the sun their business territory, as solar energy is rapidly emerging as a promising field.
In spite of its availability, solar energy has long been estimated to be of low efficiency due to its high power-generating cost. However, recent predictions that oil prices will jump to over $200 per barrel cast new light on its prospects as it takes only $160-180 to produce the same amount of energy as petroleum.
The global solar market has been seeing an average 53.5 percent of annual growth since 2004, and the tendency is predicted to continue for at least for three more years.
LG Group recently confirmed an internal plan to foster solar business as a new growth engine. Following last year's establishment of LG Solar Energy, which will exclusively take charge of solar energy generation business, it has recently set up separate develop projects for a solar lighting module for LG Electronics, and polycrystalline silicon, usually dubbed as polysilicon, for LG Chemical.
Samsung Electronics has also built a photovoltaic research institute at its LCD research center, where a project to develop solar battery products is underway.
Hyundai Heavy Industries launched a solar cell plant in Eumseong, North Chungcheong Province, last month. The new plant will produce photovoltaic modules generating 30 megawatts every year, which is enough for about 10,000 households to use.
The company, which exported $60-million worth solar power generating equipment to Europe in 2006 for the first time, plans to budget some 300 billion won ($290 million) on the project to extend production to a yearly 330 megawatts.
Automakers are in line with the trend with efforts for various hybrid models.
Hyundai-Kia Automotive Group is looking to develop eco-friendly hybrid vehicles, which are more fuel efficient with lower emissions than conventional ones.
The world no.6 maker plans to produce hybrid cars in 2009, followed by test operations of fuel cell vehicles in 2012 and their commercial production later. As part of a master plan, it will set off production of a hybrid version of its compact car, Avante, next year.
Ssangyong Motor's diesel hybrid vehicle project is also making progress. While Hyundai-Kia's products will include LPG and electric motors, those from Ssangyong will have a combination of diesel engine and electric motors. The maker aims to introduce the technology in a new sports utility vehicle model it will launch later.
Alternative energy is not just for manufacturers. Earlier, GS Holdings announced in April it will jointly create a 100-billion-won clean energy fund with the Asia Develop Bank.
The Asia Clean Energy Fund will have its investment focus on alternative energy development and energy-saving businesses, said GS Holdings. The holding company of GS Group has GS Caltex, the nation's second biggest refinery, under its wing.
"The project will help pave the way for the company's overseas energy-related business," the company said.
hckim@koreatimes.co.kr
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