DL Group is expanding its energy portfolio through DL Energy, which handles energy project development and financing, and DL E&C, which possesses EPC (engineering, procurement, and construction) capabilities for domestic and international plants and nuclear power. Additionally, Daelim Corporation, which manages energy logistics and trading, has been integrated into the vertical structure that spans from project development to construction, operation, and distribution.
DL Energy officially entered the energy sector in 2014 with the commercial operation of the Pocheon LNG Combined Cycle Power Plant. It has since broadened its global footprint as an energy developer, accumulating experience in power plant investments and operations in countries including the U.S., South Korea, Pakistan, Chile, Jordan, and Australia.
Notably, DL Energy is the only private South Korean company to directly invest in and operate a gas combined cycle power plant in the U.S. It participated in the development of the Niles Gas Combined Cycle Power Plant in Michigan in 2019, overseeing both construction and commercial operations. In 2022, it expanded its business by acquiring a stake in the Fairview Gas Combined Cycle Power Plant in Pennsylvania.
In addition to gas combined cycle power, DL Energy is developing and operating renewable energy projects, including wind and solar power, and is expanding into next-generation power sectors such as fuel cells and small modular reactors (SMRs).
DL E&C is diversifying its portfolio into future energy sectors such as SMRs and ammonia, leveraging its existing EPC competitiveness in large-scale nuclear power, LNG power, and petrochemical plants. The company is strengthening its collaboration with U.S. nuclear firm X-energy in the SMR sector. On June 25, DL E&C signed a standardized design contract with X-energy. This design standardization is a critical step in establishing the layout and interconnection of key facilities within the power plant, marking the first time a South Korean construction firm has undertaken this design directly.
X-energy possesses fourth-generation SMR technology that uses helium gas as a coolant. The company is working with Amazon to introduce 5GW of SMR capacity in the U.S. and is also collaborating with British energy firm Centrica on the development of 6GW of nuclear power. The standardized design will be applied to subsequent projects, starting with the initial unit expected to be operational by 2030.
The UK National Nuclear Laboratory (NNL) projects that the global SMR market will expand to approximately 85GW and 300 units by 2035, with a market value of around $500 billion.
DL E&C is also enhancing its competitiveness in the ammonia sector, having recently completed the world's largest ammonia production facility for Saudi Ma'aden and is pursuing projects related to hydrogen and ammonia conversion technologies in collaboration with global tech firms.
Market analysts anticipate that energy infrastructure investments will increase due to rising electricity demand driven by the expansion of AI and semiconductor industries in the U.S. Consequently, companies that possess not only construction capabilities but also project development, investment, and operational expertise are expected to stand out.
A DL Group representative stated, "We have built a differentiated energy value chain through various mergers and acquisitions, project development, construction, and operational experience in the U.S. market. We plan to continue expanding our reach in global markets, including the U.S., based on our capabilities as an energy infrastructure developer."
Meanwhile, DL E&C is enhancing its competitiveness in the next-generation nuclear sector, SMRs, based on its plant and EPC technology. Following a $20 million investment in U.S. SMR company X-energy in 2023, it has become the first domestic construction firm to sign a standardized design contract with X-energy, directly participating in the commercialization project for fourth-generation SMRs.
* This article has been translated by AI.
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