KOMIPO to Put RDF-Fired Power Plant on Line

Company signs a deal to borrow 78 bln won for project financing


KOMIPO President Nam In-suk joins hands with the participants of a ceremony to sign
an agreement to borrow 78 billion won for project financing for the construction of an RDF
-fired power plant



KOMIPO signed an agreement to borrow 78 billion won in project financing loans on April 26 as part of a project to build the RDF-fired combined heat and power plant in the 2nd Iksan Industrial Complex. Hana Bank and Woori Bank each agreed to extend 32.5 billion won in project financing, while the remaining 13 billion won will come from Korea Exchange Bank.
The project broke ground in June 2010, but the progress, now at 55 percent, has slowed.
The project financing deal will likely expedite the momentum of the construction of the RDF-fired power plant, which is to be completed by next January at a cost of 106.8 billion won.
The combined heat and power plant will supply 75 tons of heat per hour for processing to nine corporate occupants of the 2nd Iksan Industrial Complex, while yielding proceeds from the sale of 9.8MW of electricity produced at the plant to Korea Electric Power Corp.
KOMIPO projects the expected increase in revenues coming from the sale of heat and power at approximately 26.5 billion won.
The power plant will be operated only with RDF, not liquefied natural gas or coal. RDF is manufactured by shredding and compressing such combustible things as lumber, paper and plastics. Manufacturers in Buan and Muju, Jeollabuk-do, will supply the combined heat and power plant with RDF.
KOMIPO President and CEO Nam In-suk said, "Fefuse, being dumped or incinerated at waste treatment facilities, will be transformed into resources, so corporate occupants will be supplied with heat at cheaper prices, and we?l continue to expand the availability of such new and renewable energy as RDF in order to cope with climate change."
Meanwhile, in his New Year? message President Nam said, "We expect to create new revenue sources as we have laid the foundation for our entry not only into Indonesia but also into Africa by accelerating our bid to expand business portfolios abroad during last year." Looking back at last year's achievements, he said the launch of a project to build a replacement for Incheon Combined Cycle Power Unit No. 3 has paved the way for setting a milestone by "Killing two birds with one stone － stabilizing the power supply in the Seoul metropolitan area and maximizing the utilization of combined cycle power facilities."
Boryeong Thermal Power Unit No. 3 set a world record of logging 4,000 breakdown-free days and the Seoul Thermal Power Complex set a remarkable record of 30 years without an industrial accident － unprecedented feats in its 80-year history and the 100-year history of Korean power generation.
KOMIPO is working on a master plan for the construction of a combined heat and power plant to be built in Sejong City, a new administrative city in Yeongi, Chungcheongnam-do, by 2012, and the Shin Boryeong Power Units 1 & 2, being pushed according to the fifth national power supply plan, which will likely contribute to creating KOMIPO? future growth engines.
The power company has also earned a reputation in the global market, breaking the boundary of the domestic new and renewable energy markets with KOMIPO's diverse green energy development projects, including such Clean Development Mechanism (CDM) projects ranging from the Wampu Hydro Electric Power Project in Indonesia to a bio-mass power project in Malaysia, yielding tangible results. nw

Photo on Courtesy of KOMIPO