“Energy Supercycle” driven by the Special Act on Investment in the U.S. DL Group Emerges as a Hidden Beneficiary.
DATE 2026.04.07
VIEW 176
“Energy Supercycle” driven by the Special Act on Investment in the U.S.
DL Group Emerges as a Hidden Beneficiary.
Panoramic view of DL Energy’s Niles Combined Cycle Power Plant in the U.S.- Built a value chain spanning the entire energy industry, including nuclear power and SMRs
- Equipped with capabilities, including project development, financing, EPC, operation and distribution
- Stock re-evaluation begins as investment in infrastructure accelerates.
As a surge in energy demand coincides with a major structural transformation of the global industrial landscape, Korea’s construction and energy sectors are entering a new phase following the National Assembly’s passage of the “Special Act on Investment in the U.S.”. In particular, as expectations are rising for full-scale investments in nuclear power and energy infrastructure centered on the U.S., the stock prices of related companies are reacting sensitively.
The stocks that have recently garnered the most attention in the market are Hyundai Engineering & Construction and Daewoo Engineering & Construction, which possess extensive experience and a track record in constructing large-scale nuclear power plants. Based on their experience in executing existing large-scale nuclear projects, these companies have raised expectations for securing new orders and shown a steep upward trend in their stock prices.
Meanwhile, some market participants are focusing on the DL Group as a beneficiary from a more structural perspective. The analysis suggests that a comprehensive re-evaluation is necessary, as the group has built a value chain spanning the entire energy industry through its key affiliates, going beyond simple construction.
▣ Built a value chain from development of energy project and financing to EPC, operation and distribution
DL Group possesses an integrated energy portfolio centered on DL Energy, which handles energy project development, financing and operation, and DL E&C, which has EPC (Engineering, Procurement and Construction) capabilities for domestic and overseas plants and nuclear power. When Daelim Holdings, which manages energy logistics and trading, is included, the Group has secured a vertically integrated structure spanning project development, construction, operation and distribution.
DL Energy, which made a full-scale entry into the energy business starting with the commercial operation of the Pocheon LNG Combined Cycle Power Plant in 2014, is currently strengthening its position as a global energy developer. DL Energy possesses successful investment experience in major power plants across the United States, South Korea, Pakistan, Chile, Jordan, and Australia.
Its competitiveness is particularly notable in the U.S. market. DL Energy is currently the only private energy developer in Korea that invests in and operates gas combined cycle power plants in the United States. It entered the U.S. power generation market in 2019, starting from participating in the investment for the construction of Niles Gas Combined Cycle Power Plant in Michigan. With a generating capacity of 1,085 MW, this was the first instance where the Company directly participated from the development stage to construction and commercial operation. In 2022, the Company acquired a stake in the 1,055 MW Fairview Gas Combined Cycle Power Plant in Pennsylvania to expand its business. Based on high generation efficiency, both power plants are recognized as top-tier power suppliers by U.S. regional transmission organizations, maintaining stable operations and profitability.
DL Energy possesses a diverse portfolio of power sources, ranging from conventional fossil fuels such as gas combined cycles, coal, and heavy oil. It has extensive experience in developing and operating renewable energy projects, including wind and solar power. The Company is also pursuing next-generation power projects, including include fuel cells and SMRs, and holding a competitive edge as a multi-player capable of developing and operating across all global power sectors.
▣ The Company is participating in the standard design of 4th generation SMR, aiming to dominate the KRW753 trillion global market in advance.
DL E&C, responsible for the group’s construction business, is actively pursuing a transition its energy portfolio. Moving beyond its traditional strengths in large-scale nuclear power, coal-fired power, and oil refineries, it is expanding into SMRs, LNG power generation, and ammonia.
A key focus is Small Modular Reactors (SMRs), widely regarded as next-generation nuclear power plant. Through collaboration with a U.S. company X-Energy, DL E&C is preemptively securing the fourth-generation SMR technology and EPC capabilities, enhancing its prospects for entering the U.S. market.
DL E&C announced on the 25th that it has signed a contract with X-Energy for “SMR Standardization Design.” Standardization of SMRs, considered the next generation of nuclear power plants, is the design framework that forms the backbone of SMR construction; it involves concretizing how each facility within the power plant will operate in conjunction with one another. DL E&C is the first Korean construction company to directly perform such standard design work, underscoring its ambition to lead the fourth-generation SMR market through its strategic partnership with X-Energy.
Unlike conventional light-water reactors that uses helium gas as a coolant, X-Energy possesses 4th –generation SMR technology. The completed design will be applied to the first-of-a-kind unit scheduled for operation in 2030 and subsequently to follow-up projects. X-Energy is pursuing the deployment of 5 GW of SMRs, backed by investment and collaboration from Amazon in 2024, and in 2025, it also signed a joint development agreement with UK energy company Centrica for the development of 6 GW nuclear power plant.
According to the UK’s National Nuclear Laboratory (NNL), the global SMR market is expected to reach 85 GW (approximately 300 units) by 2035, with a total value of around USD500 billion (KRW753 trillion). DL E&C aims to secure this market in advance, together with its strategic partner X-Energy.
Furthermore, DL E&C is strengthening its position in the ammonia sector, which is garnering attention as a future alternative energy source. The Company has successfully secured and completed consecutive orders for the construction of the Ma’aden Ammonia Plant in Saudi Arabia, the world's largest ammonia production facility, and demonstrated its capabilities in responding to the energy transition. Ammonia is expected to serve as a key carrier in the transition to a clean hydrogen economy. DL E&C is reinforcing its foundation to respond to the future energy market in collaboration with global licensors to establish partnerships related to hydrogen-to-ammonia conversion technology.
▣ Accelerate full-scale investment in U.S. Energy Infrastructure; DL Group’s Competitiveness Highlights
On March 12, the “Special Act on Investment in the U.S.” passed the National Assembly to implement a $350 billion investment in the U.S. and is scheduled to take effect on June 18. Through this act, approximately $200 billion is expected to be invested in sectors such as energy, semiconductors, and AI. Given the power demand within the U.S., a significant portion is expected to be invested in energy infrastructure.
Amid these predictions, DL Group’s capabilities as a developer are drawing attention. Investment projects in the U.S. require comprehensive capabilities that encompass everything from business development to financing and operations, rather than merely winning orders or construction businesses. From this perspective, there is an assessment that DL Group is highly likely to be re-evaluated not merely as a short-term beneficiary, but as a structural beneficiary in the era of the great energy transition.
In particular, the DL Group possesses diverse experience and know-how to execute energy infrastructure projects within the United States. DL Energy is the only domestic energy developer that invests in and operates power plants in the U.S. DL E&C is a strategic partner of X Energy, one of the leading SMR companies in the U.S., and is currently participating in a petrochemical plant construction project worth approximately 1.7 trillion won in Texas. Additionally, DL Chemical has experience in stably operating the U.S. petrochemical company Kraton, which it acquired in 2022.
An official from DL Group official said, “We have engaged in various M&As, project development, construction, and operations in the U.S. market, and built a differentiated value chain. Based on the group’s capabilities as an energy infrastructure developer, we will actively target the global market, including the U.S., where demand is surging.”
