KDHC Inks Deal on Drastic
Energy-Saving CES
Clean energy facility for both heating and cooling

Korea District Heating Corporation signed an MOU with Gwangju Metropolitan City and Daesung Group to promote the Community Energy System(CES) project for Suwon, Gwangju and the 2nd Housing Site Development Area in Hanam.
Under this agreement concluded on December 12, the three parties will construct a large size cogeneration plants whose combined production capacity is 0.7 million kw/h, heating only boilers of 2 million kcal/h, thermal storage tanks of 0.6 million kcal/h, peak load boiler of 170 cal/h etc. This project will cost 180 billion won, the biggest single project ever in Korea.
This consortium comprised of a private enterprise, a public enterprise, and a local authority is judged to have presented a new model for a partnership among private enterprise public enterprise and public institution. Besides, it is expected to be a win-win model for the participants as know-how each party have accumulated through public projects can be applied with maximized utility.
This CES will be fueled by Liquefied Natural Gas (LNG) which discharges almost no pollutants thus reducing the energy consumption by 40% and saving 35.1 billion won every year. The CO2 emissions also will be cut by more than 46,000 tons per year. A total of 31,000 houses and commercial/public buildings in the development area will be supplied with electricity, heat, hot water, and air cooling through these facilities.
Besides the energy saving, Korea District Heating Corporation is expecting that the CES project will reduce the air pollution emissions by 52% per year and decrease the peak load during the summer season, thereby greatly contributing to the creation of a more pleasant housing environment for local residents. CES produces electricity and heat in its own facility through cogeneration and utilizes the energy generating during the electricity production for heating, which enhances energy efficiency in the housing complex. It can save 2~30% of the energy through improved energy efficiency. The air quality can be highly enhanced (3~40%) not only by a reduction of fuel consumption, but also by the concentrated management of the environment. The CES project can contribute to strengthening corporate competitiveness by the supply of the cheap energy in good quality and to the creation of the pleasant living environment for the houses by 24-hour heating supply. And, thanks to the concentration of the facilities, it can eliminate headaches from site development and also diminish the loss from power transmission. The benefits from the CES project do not stop here. As it enables the regional supply of the air conditioning service, the peak load in the summer season can be highly reduced, and the diversifying of fuel sources results in less oil dependency and increased energy reuse.
The housing site development project for a total of 1.7 million pyeong (1.4 million pyeong in Suwan and 0.3 million pyeong in Hanam) started in 2003. The project will be finished along with the completion of energy facilities in 2008. A supply of heat and hot water will be initiated in Oct. 2008.
A KDHC official said, the accumulated CES experiences and know-how of the corporation and the civilian management technology would create synergy effects. Two companies have agreed on sustained collaboration in the future.
This MOU is a part of a series of KDHC's effort to encourage the CES business through local authorities and other energy corporations. At the end of last year, the corporate concluded an investment agreement on new and renewable energy sources with Sinan-gun, South Jeolla province. And it also signed mutual cooperation agreements on energy business with Korea Southern Power Co., Ltd. and Korea Midland Power Co., Ltd.
The MOUs with the Korea Southern Power Co., Ltd. and the Korea Midland Power Co., Ltd., contracted on last Dec. 20~21, is meaningful as it can improve business economy, when they initiate a new CES project, while significant synergy also could be created through an effective division of local heating business and electricity. And, three parties can share their experiences and technologies in New and Renewable energy business and overseas energy projects. According to the A KDHC official, the corporate will aggressively seek any opportunity for collaboration with other energy operators. nw

KDHC now strives to be world's greatest district heating service company