Investment of 263 Billion KRW, 121 MW Power Generation Starting in 2026
Expected to Reduce Greenhouse Gas Emissions and Ensure Stable Power Supply
On the 23rd at 10 a.m., Ulsan City will hold an investment agreement signing ceremony for the ‘Construction of a Natural Gas Self-Generation Facility (GTG Project)’ in the mayor’s office on the 7th floor of the main building, attended by Mayor Kim Doo-gyeom and Park Bong-soo, President of S-OIL.
The self-generation equipment (GTG, Gas Turbine Generator) is largely divided into a compressor, combustion section, turbine section, and generator section. It operates the turbine through the combustion reaction of natural gas to generate electricity via the generator, transfers the high-temperature exhaust gas from the self-generation equipment (GTG) to a Heat Recovery Steam Generator (HRSG), recovers all waste heat, and produces high-pressure steam.
This agreement was prepared to respond to the government’s energy policy direction through investment in the construction of the natural gas self-generation facility and to cooperate in revitalizing the local economy and creating jobs.
According to the agreement, S-OIL will invest 263 billion KRW to build a natural gas self-generation facility (GTG) with a capacity of 121 MW, which currently accounts for 24% of electricity consumption, at its existing factory in the Onsan National Industrial Complex.
The natural gas self-generation facility (GTG) is scheduled to begin construction in February and be completed by December next year. Once completed, it is expected that the operation of the steam production boilers previously installed can be significantly reduced by reinjecting all of the high-temperature, high-pressure steam (160 tons per hour) produced by the waste heat recovery boiler into other processes.
The electricity produced (121 MW) will be entirely used by S-OIL, contributing to the stability of power supply in the Ulsan region.
In particular, through this investment agreement, S-OIL has promised to cooperate with Ulsan City in creating jobs and revitalizing the local economy by prioritizing the hiring of local residents.
Ulsan City also plans to continuously cooperate with S-OIL to ensure the smooth progress of the new investment project and provide active administrative support such as prompt permits and approvals.
Park Bong-soo, President of S-OIL, said, “We appreciate Ulsan City’s full support for large-scale investment projects including the Shahin Project that S-OIL is promoting,” and added, “Through the construction of this self-generation plant, we will respond to the national expansion and distribution of decentralized power sources and develop into a sustainable global company.”
Mayor Kim Doo-gyeom said, “We express our gratitude to S-OIL for making this valuable investment decision to ensure stable power supply and improve air quality in the Ulsan region, which consumes energy intensively,” and added, “Ulsan City will spare no administrative and financial support, including establishing a dedicated support system to ensure the successful progress of this agreement.”
This investment is expected to contribute to achieving carbon neutrality and revitalizing the local economy by reducing greenhouse gas emissions, minimizing Korea Electric Power Corporation’s transmission and distribution losses, and securing the stability of national power supply in line with the government’s energy policy direction.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
