Construction Begins at South Korea's Largest Combined-Cycle Power Station

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--This month, Pocheon Power (Pocheon, South Korea) began work on its new combined-cycle power station in Gyeonggi Province. The grassroot power station is under development in association with Daelim Industrial Company Limited (SEO:000210) (Seoul) and Taeyoung Corporation (Seoul). It represents one of the country's largest combined-cycle projects, though it is not the only one in development. Industrial Info is currently tracking more than 2,800 megawatts (MW) worth of combined-cycle projects in South Korea, including the new Pocheon station.

Pocheon Power is a joint venture between Daelim, Taeyoung and Mitsubishi Heavy Industries Limited (TYO:7011) (MHI) (Tokyo), though MHI holds only a 7% share. Pocheon signed a contract with MHI earlier this year for gas turbine generators, as well as a 16-year maintenance agreement. The new power station is due for commissioning during the last quarter of 2014.

MHI began providing South Korean power producers with combined-cycle equipment in 2007, starting with Gunsan power station under Korea Western Power Company Limited, a spin-off of Korea Electric Power Corporation (NYSE:KEP) (KEPCO) (Seoul). Since then, MHI also has provided generators to other KEPCO spin-offs, including generators for South Korea's first ultra-supercritical, coal-fired power station at Dangjin.

Another combined-cycle project is under way at Dangjin's combined-cycle power station under GS Electric Power & Services Company Limited (Dangjin, South Korea). Due for completion in 2013, the unit addition will boost the existing plant's capacity to 1,500 MW. All together, South Korea currently has roughly 7,000 MW in gas-related power projects on the books, with a good portion made up of combined-cycle projects.

Gas-fired and liquefied natural gas (LNG)-fired combined heat and power (CHP) plants also make up a fair portion of South Korea's gas-related projects. Some of the country's new energy strategies are pushing power producers to up the number of CHPs to supply district heating and electricity to approximately one-third of the country's 14 million households by 2014.

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