A 540 Billion Won Smart Farm Complex to Be Built in Dangjin, Chungnam

Chungnam Province, Daehan Steel, and Dangjin City Sign Investment MOU on June 26
1.19 Million Square Meters in Seokmun Reclaimed Land...
To Be Developed as a Carbon-Neutral Complex Utilizing Waste Heat from Steel Mill

Chungnam Province is partnering with Daehan Steel and Dangjin City to establish a smart farm complex worth 540 billion won.

This smart farm complex will utilize waste heat from a nearby steel mill as heating and cooling energy, enabling resident farmers to significantly reduce their energy costs while also achieving carbon neutrality.

On June 26, Governor Kim Taeheum signed a memorandum of understanding for investment in the "Eco-Grid Dangjin Project" with Oh Chihoon, Chairman of Daehan Steel, and Oh Sunghwan, Mayor of Dangjin, in the situation room at the provincial government office.

Chungnam Provincial Government Office building.

According to the memorandum of understanding, Daehan Steel will establish a 1.19 million square meter smart farm complex (hereafter referred to as the Seokmun Smart Farm Complex) in the Seokmun reclaimed land area (Tongjeong-ri, Seokmun-myeon, Dangjin) by 2028. The total project cost for the smart farm complex is 544 billion won.

Currently, the largest smart farm complexes in Korea are the Smart Farm Innovation Valleys in Sangju (Gyeongbuk), Miryang (Gyeongnam), Gimje (Jeonbuk), and Goheung (Jeonnam), each covering up to 200,000 square meters. Once the Seokmun Smart Farm Complex is completed, it will claim the title of "largest in Korea."

The Seokmun Smart Farm Complex will consist of the following: 284,297 square meters of youth rental greenhouses, 138,843 square meters of youth sale greenhouses, 601,653 square meters of general sale greenhouses, 46,281 square meters of model greenhouses, and 119,008 square meters of public support facilities such as nurseries, processing and distribution centers, cold storage, and sorting and packaging centers.

Priority for greenhouse allocation will be given to young people from Chungnam, including those from Dangjin. The province plans to ease the financial burden on young farmers through various financial support measures.

The most notable aspect of the Seokmun Smart Farm Complex is its plan to achieve carbon neutrality by linking with the YK Steel plant, which will be established nearby in 2028.

YK Steel, a subsidiary of Daehan Steel, plans to relocate its Busan plant to a 157,296 square meter site in the Seokmun National Industrial Complex.

Daehan Steel will supply waste heat, close to 300 degrees Celsius, from the YK Steel rolling mill chimneys to the Seokmun Smart Farm Complex at a low cost.

The Seokmun Smart Farm Complex will use this waste heat to produce hot water. In winter, the hot water will be circulated through greenhouse pipelines to raise the temperature, while in summer, absorption chillers will be used to lower the internal temperature of the greenhouses. This will provide significant energy cost savings for the farms operating within the complex.

Assuming the annual energy cost for a general greenhouse of 33,000 square meters (10,000 pyeong) is 500 million won, if YK Steel supplies waste heat for around 200 million won, farmers will save approximately 300 million won in costs.

For the entire 1.19 million square meters of the Seokmun Smart Farm Complex, the annual energy cost can be reduced from 18 billion won to 7.2 billion won, resulting in savings of 10.8 billion won.

The 31,000 tons of carbon emission rights that farms secure annually through operating the Seokmun Smart Farm Complex will be provided to YK Steel. This amount is equivalent to half of YK Steel's annual carbon emissions.

Additionally, Daehan Steel will establish a system through its subsidiary, the agricultural corporation GREF, to purchase and sell all agricultural products produced at the Seokmun Smart Farm Complex. GREF will also support nurseries, processing, and distribution, allowing resident farmers to focus solely on production.

If the first phase of the smart farm complex (1.19 million square meters) is successfully operated, Daehan Steel plans to add a second phase of 530,000 square meters and a third phase of 590,000 square meters in nearby areas.

Governor Kim Taeheum stated, "I believe it is desirable for Daehan Steel to operate a smart farm by utilizing industrial waste heat. Chungnam is a province with a well-developed manufacturing industry and many factories, so I hope that this eco-friendly business model using waste heat will spread widely."

Governor Kim added, "We will provide every possible support for the success of this project," emphasizing, "We will actively support the swift establishment of a special purpose company (SPC), activation of a regional investment fund, as well as all necessary permits and approvals, including the sale and purchase of farmland."