Doosan Enerbility's Strategic Wins Signal Dominance in Clean Energy Infrastructure

The global energy transition is reshaping the demand for infrastructure, with gas-fired power plants emerging as a critical bridge between fossil fuels and renewables. South Korea's Doosan Enerbility stands at the forefront of this shift, leveraging its dominance in ultra-large steam turbines to secure multi-billion-won contracts in Saudi Arabia and beyond. While the company's 964 billion won order win (likely an aggregation of recent deals) has drawn investor attention, the real story lies in its structural advantages: a near-monopoly in a niche market, strategic partnerships, and a clear path to capitalize on rising demand for clean energy infrastructure.

Market Leadership Built on Turbine Technology

Doosan Enerbility's 33.1% global market share in ultra-large steam turbines (≥300MW) is no accident. These turbines are the backbone of modern combined-cycle gas power plants, which offer higher efficiency and lower emissions than older coal or oil-fired systems. In Saudi Arabia—a market where the company has secured nine steam turbine orders since 2024—its equipment is enabling projects like the Ghazlan 2 and Hajar power plant expansions, each requiring dual 650MW and 540MW turbines.

The company's technological edge is further underscored by its independent development of large gas turbines since 2019. This achievement, recognized as one of Korea's “Top 10 Mechanical Engineering Technologies of 2024”, positions Doosan as the fifth global player (after GE, Siemens, Mitsubishi, and Ansaldo) to master this complex machinery. By 2028, its turbines will power projects like the Haman Combined Cycle Plant, where Doosan is assuming full EPC (engineering, procurement, and construction) responsibility—a first for the firm, signaling its confidence in vertical integration.

Structural Growth Drivers: Why the Momentum Is Sustainable

1. Saudi Arabia's Energy Ambitions: The kingdom aims to expand its LNG capacity and reduce oil dependence, creating a $100 billion addressable market for gas turbine suppliers through 2030. Doosan's 40-year track record in the Middle East and partnerships with local entities like Marafiq give it a leg up.
2. Service Contracts Fuel Recurring Revenue: Long-term service agreements (LTSAs) for turbine maintenance and upgrades—such as the 10-year deal with KOSPO—are critical. These contracts, which account for $1 trillion in potential revenue by 2038, provide stability in an otherwise project-driven business.
3. Technological Diversification: Beyond traditional turbines, Doosan is investing in hydrogen gas turbines and 3D-printed components, which could reduce costs and enable cleaner energy mixes. Its first hydrogen liquefaction plant in Korea (targeting 2023 commercialization) hints at future opportunities in green hydrogen.

Investment Case: Betting on a Clean Energy Kingpin

For investors, Doosan Enerbility represents a leveraged play on two unstoppable trends:
- The Gas Transition: With global LNG capacity projected to grow from 2,043GW in 2024 to 2,434GW by 2032 (HIS Markit), demand for gas turbines will remain robust.
- The Service Economy: As installed turbines age, maintenance and upgrades will become a cash cow. Doosan's 9 units in Saudi Arabia alone ensure a steady pipeline of service work.

Risks include geopolitical tensions in the Middle East and delays in project timelines (e.g., the 2028 completion target for Yanbu 2's fuel conversion). However, the company's $1 trillion+ order backlog and 50%+ margins on service contracts suggest resilience.

Final Take

Doosan Enerbility isn't just winning orders—it's building a moat around its steam turbine business. With clean energy infrastructure spending set to boom, the firm's technical expertise, geographic focus, and recurring revenue streams make it a compelling investment. For those willing to look past short-term project noise, this could be a decade-long growth story.

Consider adding Doosan Enerbility to your portfolio if you believe in the inevitability of gas as a transitional energy source and the power of niche market dominance.