South Korean clean energy companies become major winners from Washington's sweeping climate law as they benefit from tax credits and a shift away from China.
South Korean solar equipment maker Hanwha Solutions Corp., which has manufacturing and research sites in North America, said it’s expecting to receive more than $200 million in tax credits annually starting from 2023.
CS Wind Corp., a wind farm developer which operates the largest US facility for constructing wind towers, is also expecting a big windfall from the credits. The two businesses are looking into making more investments in the U.S. as result of the law.
The Inflation Reduction Act (IRA), which President Joe Biden signed into law last week, earmarks $374 billion for cutting carbon emissions and expanding domestic manufacturing of wind, solar, batteries, and green hydrogen. The U.S.’ goal to cut reliance on Chinese equipment should also gives Korean firms a competitive advantage.
