Hyundai Electric’s $51 million deal to power smart city
The Korean firm will supply transformers and other substation equipment for the Saudi Arabian smart city of Neom.
Image for illustration purposes.
South Korea, Seoul: The Korean firm will supply transformers and other substation equipment for the Saudi Arabian smart city of Neom.
HD Hyundai Electric Co., the electrical equipment and energy solution company under South Korea’s shipbuilding giant HD Hyundai Co., has won a 67.8 billion won ($51 million) deal to supply substation equipment for Saudi Arabia’s smart and green city Neom, the Korean company announced on Monday.
Under the contract signed with Al Gihaz Contracting Company Saudi Arabia on Sunday, the Korean company will provide transformers, high-voltage circuit breakers and reactors in a package for the Saudi Arabian power company’s substation project dubbed Neom Mountain by February 2025.
The two companies have discussed detailed terms to reach the final deal, the Korean company explained. It hopes the latest deal will pave the way for other major electricity generation and distribution infrastructure deals in the oil-rich country that is seeking to reduce its reliance on black gold for revenue with major futuristic city and infrastructure projects backed by smart and green technologies.
Neom is one of those cities under development in a desert area in the kingdom’s northern Tabuk Province. It is a smart city to be fully run on renewable energy such as solar power and green hydrogen, as well as cutting-edge technologies, such as 5G networks, the Internet of Things, cloud computing and robotics. The Neom Mountain would be the second substation in the green, smart city once it is built.
Under its Vision 2030 initiative, the Saudi Arabian government has set a goal to expand the state’s total power output to 120 gigawatts (GW) by 2030, of which 58.7 GW will be sourced from renewable energy.
Source: The Korea Economic Daily
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