FACTBOX-Green investment by S.Korean industry

Wed Sep 30, 2009 5:05am EDT

By Cho Mee-young

SEOUL, Sept 30 (Reuters) - Some of South Korea's heaviest polluters are unveiling billions dollars of investments in green projects to cash in on state-backed incentives and the global push for renewable energy. [ID:SEO334233]

Here are some of their investment plans:

-- SK ENERGY (096770.KS: Quote, Profile, Research, Stock Buzz)

South Korea's No.1 oil refiner is currently testing for mass production lithium-ion batteries for hybrid electric vehicles, and according to officials will decide on the location and scale of production when it inks a deal with an automaker. The firm has not disclosed how much it invested in battery development.

Separately the refiner and world No. 6 steelmaker POSCO (005490.KS: Quote, Profile, Research, Stock Buzz) said in July they would develop synthetic natural gas from low-cost coal to replace annual imports of 200 billion won ($168 million) of liquefied natural gas (LNG), investing 1 trillion won to build a coal to liquid plant by 2013. [ID:nSP340684]

-- GS CALTEX

The country's No.2 refiner said early this year that it had sealed a deal with Japan's Nippon Oil (5001.T: Quote, Profile, Research, Stock Buzz) to jointly build a $100 million carbon materials plant in South Korea.

The joint venture, named Power Carbon Technology, will produce 300 metric tonnes of carbon materials per year from April 2010, and expand capacity to 900 metric tonnes by 2015. The materials are mostly used for supercapacitors that store energy and power hybrid cars. [ID:nSEO281720]

-- LG CHEM (051910.KS: Quote, Profile, Research, Stock Buzz)

South Korea's No.1 chemicals maker spearheaded the rally in green technology investments among Korean firms with a deal to supply batteries to General Motors' [GM.UL] Volt plug-in vehicle, and set up a battery joint venture with Hyundai Mobis Co (012330.KS: Quote, Profile, Research, Stock Buzz), the car-parts making unit of Hyundai Motor Group.

In June, LG Chem said it would invest 1 trillion won in an electric car battery plant over the next four years, aiming to derive total revenue of 2 trillion won from the battery business in 2015. [ID:nSEO150729] [ID:nSEO339458]

-- HYUNDAI HEAVY INDUSTRIES (009540.KS: Quote, Profile, Research, Stock Buzz)

The world's No.1 shipbuilder said in its first-half report this year that it had chosen renewable energy as its new growth engine and was investing a maximum of 300 billion won in the solar cell and power module businesses from 2008-2009, hoping to boost revenues tenfold to 1 trillion won for 2008-2010. It also plans to spend 105.7 billion won on the wind power business.

-- DAEWOO SHIPBUILDING & MARINE ENGINEERING (042660.KS: Quote, Profile, Research, Stock Buzz)

The world's No.2 shipbuilder announced in August that it would enter the wind power business, hoping its expertise in offshore plants and vessels would help it in maritime wind power development. It signed a deal to buy Dewind, a wind power turbine-making unit of U.S. Composite Technology Corp, for $50 million.

-- SAMSUNG HEAVY INDUSTRIES (010140.KS: Quote, Profile, Research, Stock Buzz)

The world's No.3 shipbuilder will spend 600 billion won on wind power generating facilities by 2015, aiming to generate 3 trillion won in revenue and enter the global top seven makers by that time, according to local media. ($1=1191.0 Won) (Additional report by Rhee So-eui; Editing by Jonathan Hopfner and Lincoln Feast)