South Korea’s Hyundai Heavy Industries Co entered business venture with oil refiner Hyundai Oilbank Co. and state-run Korea Electric Power Corp. (KEPCO) to export power generators fueled by high-sulfur carbon coke.
The three firms on Thursday signed a memorandum of understanding on cooperating on exporting petroleum coke-powered circulating fluidized bed (CFB) boilers.
Hyundai Heavy Industries will be in charge of designing and building the boilers running on coke fuel and Oilbank of operation, and KEPCO of marketing them. The petroleum coke, or petcoke in short, is a byproduct of crude oil refining. It is a cheap fuel for generating electric power but requires special facilities and high-skilled operational technology.
Hyundai Heavy Industries is selective manufacturers capable of building a circulating fluidized bed combustion boiler and Hyundai Oilbank with expertise of running the sensitive system.
The three companies plan to construct circulating fluidized bed combustion boilers near global oil refineries that sell pet coke with an aim to re-sell the electricity generated from their power generators to the oil refiners. According to Hyundai Oilbank, there are about 250 oil refining facilities that generate the waste from refining.
Hyundai Heavy Industries Group targets to develop 20 projects in five years and generate 10 trillion won ($8.8 billion) in sale.
Shares of Hyundai Heavy Industries gained 2.62 percent to close at 176,000 won on Thursday. Korea Electric Power shares closed at 40,850 won, up 0.12 percent.
By Jung Wook
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]