DL Group poised to benefit as energy infrastructure era takes shape

Interest is growing in domestic construction companies tied to US nuclear and energy infrastructure investment, following the National Assembly's passage of a special act on investment in the United States.

If investment to foster advanced industries in the US — including energy, semiconductors and AI — moves forward, around $200 billion is expected to flow into related sectors. DL Group stands out as one of the companies with a competitive edge in the US market. The group's energy business portfolio centers on DL Energy, which handles energy project development, financing and operations, and DL E&C, which has the engineering, procurement and construction (EPC) capabilities to execute domestic and overseas plant and nuclear power plant projects.

DL Energy, a private energy developer that invests in and operates combined-cycle gas power plants in the United States, entered the US power market in 2019 when it joined the construction investment for a new combined-cycle gas plant in Niles, Michigan. In 2022, it expanded its footprint by acquiring a stake in the 1,055 MW Fairview combined-cycle gas plant in Pennsylvania. Both plants have earned recognition as top-tier power suppliers on US electricity exchanges, thanks to their high generation efficiency, and continue to deliver stable operations and profitability.

DL Energy has built a broad generation portfolio that extends well beyond conventional fossil fuels such as gas, coal and heavy oil. The company has developed capabilities to develop and operate projects across the global power sector — spanning renewable energy such as wind and solar, as well as fuel cells and small modular reactors. DL Chemical, meanwhile, has accumulated stable operating experience since acquiring US petrochemical company Kraton in 2022.

DL E&C, the group's construction arm, is expanding into SMRs, LNG power generation and ammonia as the energy portfolio transition accelerates. Its primary focus is on SMRs, widely regarded as next-generation nuclear power plants. Through collaboration with US-based X-energy, DL E&C is proactively securing fourth-generation SMR technology and EPC capabilities, strengthening its prospects for entering the local market.

DL E&C is also building expertise in ammonia, an alternative energy source drawing growing global attention. A prime example is its back-to-back contracts to build and complete the Ma'aden ammonia plant in Saudi Arabia — one of the world's largest ammonia production facilities. The company is laying the groundwork for the future energy market by forging partnerships with global licensors on hydrogen-to-ammonia conversion technology.

Industry observers say DL Group's moves position it for reassessment not merely as a short-term beneficiary but as a structural winner in the era of the great energy transition.

"We have built a differentiated value chain through various mergers and acquisitions, project development, construction and operations in the US market," a DL Group official said. "Drawing on the group's capabilities as an energy infrastructure developer, we will aggressively pursue the US and other global markets where demand is surging."

In June, DL Energy had its corporate bond credit rating upgraded from A to A+ with a stable outlook by both Korea Ratings and NICE Credit Rating.