Hyundai E&C, AusNet extend alliance beyond transmission and substations to BESS and data centers

[Financial News] Cooperation between AusNet, which operates Victoria’s power grid, and Hyundai Engineering & Construction will expand beyond transmission and substation facilities to grid-connection projects such as battery energy storage systems (BESS) and data centers. Having secured two major energy partners locally, Hyundai appears to be stepping up its push to gain an early foothold in Australia’s infrastructure market.
On the 19th, Hyundai Engineering & Construction said CEO Lee Han-woo signed a strategic memorandum of understanding (MOU) on the 15th (local time) at the Australian office of Copenhagen Infrastructure Partners (CIP) in Melbourne, with executives including Lee Hwa-ru, a partner in CIP’s Flagship Investments division. The two companies agreed to join forces to jointly pursue renewable energy projects and related infrastructure projects in the Asia-Pacific region.
CIP is considered the world’s largest green energy investor and asset manager. It has consistently invested in wind and solar power, energy storage, green hydrogen, and carbon capture and storage (CCS) in more than 30 countries, including Australia, and is seen as having broad scope for cooperation with Hyundai Engineering & Construction.
The following day, the 16th (local time), the companies signed a memorandum of agreement (MOA) at AusNet’s headquarters in Melbourne. Lee and key representatives from both sides, including AusNet CEO David Smales, attended.
Under the MOA, the two companies agreed to work together not only on power infrastructure projects already underway but also in grid-connection fields such as BESS and data centers, which can enhance the flexibility, stability, and usability of renewable energy. They also agreed to strengthen technical cooperation in engineering, procurement, and construction (EPC) and operations and management through personnel exchanges, and to continue building a long-term partnership.
AusNet is Victoria’s largest energy network company. It operates three core infrastructure networks: electricity and gas distribution systems, and a transmission network spanning the state. It was acquired in February 2022 by a consortium led by Canada’s Brookfield Asset Management and became a privately held company.
Hyundai Engineering & Construction and AusNet have worked closely together on transmission and substation infrastructure and renewable energy since signing an MOU at Hyundai’s headquarters in Gye-dong, Jongno-gu, Seoul, last September. The head of Hyundai’s global business division was involved in that agreement, but just over a year later its CEO personally visited AusNet’s local headquarters, and the agreement was upgraded from an MOU to an MOA.
Hyundai Engineering & Construction’s push into Australia gained momentum after it established a Sydney branch in April 2024. In October that year, it signed a comprehensive MOU with the Government of South Australia covering renewable energy, infrastructure, and housing. Last September, it also signed an investment agreement for a high-rise apartment development in Chatswood, Sydney, marking its entry into housing development.
The project involves building a 45-story, 260-unit rental apartment building near Chatswood Station with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Korea Investment Real Asset Management. The total project cost is 350 billion won, with main construction scheduled to begin in March next year and occupancy targeted for October 2029.
Hyundai Engineering & Construction plans to use these two partnerships as a springboard to continue expanding its network of cooperation with leading global companies and deliver tangible results in power grid construction and renewable energy development in Australia. A Hyundai Engineering & Construction official said, “Australia’s energy infrastructure business is growing rapidly as rising electricity consumption driven by the expansion of AI data centers coincides with the transition to renewable energy, and the government is leading large-scale power grid expansion.” The official added, “We hope Hyundai Engineering & Construction, with its technological expertise and business capabilities across the entire energy value chain, can create strong synergies in markets across the Asia-Pacific, including Australia, through medium- to long-term partnerships with leading global companies.”
[email protected] Jung Kyung-soo Reporter