By Han Ji-myung, Reporter, July 25, 2024, 08:00
[Interview] David Kim, Head of SK ecoplant Americas Corporation "Establishing Top-Tier Position in the High-Potential US Market with Fuel Cells."
[Editor’s Note] With a target of $10 billion in cumulative overseas construction orders, the sector is determined to overcome the extended economic downturn worsened by COVID-19. However, competition in the overseas order market is intensifying. News1 re-examines the dynamic sites of K-construction, which navigates fierce international landscapes armed with advanced construction technology and accumulated expertise.
(New York, USA) - "SK ecoplant Americas is fostering sustainable growth through eco-friendly energy projects, including fuel cells and solar power, in the North American market."
David Kim, Head of SK ecoplant Americas, shared this vision during an interview with News1 on July 16 at the SK ecoplant local office in New Jersey, USA, discussing the company’s expansion strategy and eco-friendly energy vision for the North American market.
Kim joined SK Telecom in 1997, working in strategic and planning roles within the management planning office for about eight years. In 2005, he moved to the United States, serving as Vice President and CFO of SK Telecom. During this time, he established Cooper Venture Capital, investing in over 20 startups and achieving a 250% ROI (return on investment).
After founding and running a venture capital firm in Silicon Valley for about two years, he was appointed Head of SK ecoplant Americas in early 2024. Reflecting on his transition, Kim stated, "SK ecoplant's transformation from an EPC contractor to an eco-friendly energy company showcased immense growth potential, which attracted me to join."
◇ Targeting the High-Potential US Market as a Top-Tier Green Solution Provider
SK ecoplant provides distributed power solutions, producing stable 24-hour electricity and reducing air pollution through its fuel cell business. Additionally, it enhances the reliability and continuous operation of critical facilities such as data centers and hospitals through its fuel cells. This approach has expanded its market share in North America across various projects, including fuel cells, solar power, and ITAD (IT Asset Disposal Services).
Kim explained, "Currently, SK ecoplant Americas is focused on the fuel cell business for data centers. With the US expected to require 35GW of AI-based data center power by 2030, the fuel cell market holds significant potential."
He noted that the demand for data centers and fuel cell projects in the US is rapidly growing, driven by the surge in AI applications and the resolution of vacancy issues in data centers by the end of 2022.
Kim added, "We have been supplying fuel cells in collaboration with Bloom Energy since 2020 and plan to gradually increase capacity. Ultimately, SK ecoplant aims to establish itself as a top-tier green solution provider in the US."
◇ Capitalizing on US Green Energy Policies for Market Penetration
The bipartisan infrastructure law and the Inflation Reduction Act (IRA) in the US are driving substantial investments in eco-friendly energy projects.
The US rejoined the Paris Agreement in 2021, passed the bipartisan infrastructure law, and enacted the IRA in 2022, allocating $370 billion to the clean energy industry. This law, effective until 2034, offers tax benefits for clean energy production and investment.
Kim sees these legislative measures as pivotal in supporting SK ecoplant's eco-friendly energy projects in the US market.
SK ecoplant operates in three sectors: environment, energy, and solutions. The environment sector includes recycling businesses such as incineration, landfill, and water treatment. The energy sector focuses on solar, wind, and fuel cell projects, while the solutions sector centers around EPC (Engineering, Procurement, and Construction) businesses.
He highlighted, "SK ecoplant is active in the US with fuel cell and solar projects, including a 459MW solar project in Concho, Texas, set to commence commercial operations in 2027. We expect significant achievements in the solar business as well."
The economic viability of the fuel cell business is improving, with increasing revenue from the US market. Kim emphasized, "We are expanding our business in collaboration with Bloom Energy, aiming for 100MW of fuel cell orders within the next three years. We anticipate higher utilization of fuel cells in critical areas like data centers."
◇ Targeting $1 Billion Revenue by 2030 and Success in the Global Market
Kim projected that by 2025, clean energy, including nuclear and renewable energy, will surpass natural gas as the primary power source in the US. "This shift is driven by efforts from the federal government, state governments, and corporations to transition to eco-friendly energy, and SK ecoplant aims to leverage this momentum to achieve significant success locally."
The integration of AI and data centers is also expected to present substantial opportunities. Kim explained, "Large Language Models (LLMs) like ChatGPT require over 10 times the compute cycles compared to Google Search, sharply increasing data center power demand. SK ecoplant is demonstrating leadership in this field."
Based on these foundations, SK ecoplant Americas aims to achieve $1 billion in revenue by 2030, establishing itself as a Global Top-tier Green Solution Provider.
Kim concluded, "With the rapid expansion of eco-friendly energy infrastructure, SK ecoplant plays a crucial role in this market. We aim to achieve success in the global market based on our achievements in the US."
◇ Profile: David Kim, Head of SK ecoplant Americas Corporation
Bachelor's in Business Administration, Yonsei University
Founder & Partner, KRS Ventures
Vice President, SK Telecom Americas
CFO, SK Telecom Ventures
CFO, SK Telecom InnoPartners
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