South Korea’s Kyungdong City Gas Co., a city gas supplier active in Ulsan and Yangsan in South Gyeongsang Province, has ventured into fuel cell power sector to build up its business portfolio.
The company announced on Sunday that it signed a business agreement with Korea Midland Power Co., Korea Expressway Corp. and SK Engineering & Construction Co. for a joint venture in fuel cell power generation business after obtaining a business license.
Under the agreement, Kyungdong City Gas will be in charge of licensing business and supplying city gas and SK E&C will lead power plant construction. Korea Midland Power will purchase a renewable energy certificate and Korea Expressway will provide land for the power plant and help the licensing business.
The fuel cell power plant will be built at an idle site of 5,600 square meters adjacent to South Yangsan Interchange on joint investment of 100 billion won ($90 million). “We aim to begin operation of the plant in 2020,” said an official from Kyungdong City Gas, adding that the plant will be capable of producing 20 megawatt electricity per hour, enough to power more than 40,000 households in Yangsan a year.
A fuel cell power plant produces energy by combining hydrogen extracted from natural gas and oxygen in the air. It generates energy in an environmentally-friendly way without emitting any pollutants as it doesn’t need to combust fuels like thermal power generation.
Kyungdong City Gas has also been running a power plant that generates energy by recycling waste heat from S-Oil’s Onsan refinery in Ulsan. The plant that started commercial operation in July last year produces 17.4 MW of electricity per hour.
Shares of Kyungdong City Gas fell 1.38 percent to close Monday at 46,450 won.
By Seo Dae-hyun and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]