South Korea’s Hana Financial Investment Co. will finance a project constructing 200-megawatt biomass power plant worth 585.3 billion won ($500.7 million) in Gunsan, west of South Korea, led by state-run utility firm Korea Midland Power Co.
Hana Financial Investment announced on Monday that it held a signing ceremony marking the partnership between the financial investment firm and Korea Midland Power to construct a biomass power plant in the Gunsan industrial complex on the western coast of Korea on last Friday.
Under the terms of agreement, the financial institution will provide funds to the state-run project building a 200-megawatt biomass power plant. Gunsan Bioenergy Inc., a special purpose company created to run the project, currently is taking steps to gain approval to begin the construction in August. The commercial operation of the plant is slated for July 2020.
Upon completion, the biomass power plant will generate 1,251 gigawatt-hour (GWh) power per annum, which is equivalent to providing electricity to around 260,000 homes. The power plant is also expected to help the country to reduce greenhouse gas emissions by 810,000 tons every year.
Hana Financial Investment created a new financial model through a successful partnership with a power utility company from the very beginning of the project, said Lee Jin-kook, president and chief executive officer of Hana Financial Investment.
By Song Gwang-sup
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