As energy prices surge in the aftermath of Middle East conflicts, coal-fired power generation—once sidelined by decarbonization policies—is gaining renewed attention as an alternative power source worldwide. With countries expanding coal power operations to secure energy flexibility after years of planned reductions, Korean small and medium-sized enterprises specializing in thermal power components may find new momentum for overseas expansion.
According to industry sources on January 13, Korea Western Power plans to establish an export support center in Vietnam within the first half of this year to systematically assist domestic SMEs in coal power components to enter overseas markets.
"We have designated Vietnam as a strategic base country to diversify sales channels for SMEs, and we will expand overseas market entry into ASEAN and India," a Korea Western Power official said.
The move aims to open overseas sales channels for SMEs facing business difficulties as the domestic coal power equipment and technology market shrinks due to carbon neutrality policies.
With countries expected to maintain or expand coal-fired power generation for the time being amid the Middle East energy crisis, related SMEs are expected to find opportunities for a turnaround.
Domestic coal power component SMEs are building track records in overseas markets based on their technological competitiveness.
Nano, a company specializing in denitration catalyst filters, signed a $1.7 million supply contract on January 1 with Cardinal Operating Company (COC), a U.S. thermal power plant operator, for selective catalytic reduction (SCR) catalyst filters. SCR is a technology that removes nitrogen oxides (NOx), a major air pollutant. The contract covers initial supply volumes to be applied at coal-fired power plants. Nano plans to accelerate its expansion into the North American thermal power market following this supply deal.
Dongwon AHE, a thermal power plant company, established a new factory in Vietnam last year through Korea Western Power's overseas sales performance-sharing support program. Dongwon AHE designs, manufactures, constructs, and maintains auxiliary power generation equipment used by power companies both domestically and internationally.
The expansion of coal-fired power generation in Southeast Asia and India, where the Korean government is promoting overseas expansion, is particularly encouraging. On December 4, the Thai government issued an emergency order directing maximum output operation of coal-fired power plants in preparation for potential power shortages. According to Reuters, the Indian government is also reportedly reviewing plans to operate all coal-fired power plants at maximum capacity ahead of summer, when cooling demand surges.
Experts believe the coal revival trend will continue for the time being as the Strait of Hormuz, through which 20 percent of global oil and liquefied natural gas (LNG) shipments pass, faces disruption. Coal consumption has been steadily increasing due to rising energy prices from the prolonged Russia-Ukraine war and declining hydropower and wind power generation.
According to the International Energy Agency (IEA), global coal consumption rose 0.5 percent year-on-year to 8.845 billion tons last year, up from 8.675 billion tons in 2023 to 8.805 billion tons.
"Global coal demand will show a gradual decline through 2030," an official at the Korea Energy Economics Institute said, adding that "coal consumption in Southeast Asia and India will rise by an annual average of 4 percent and 3 percent respectively through 2030."
