POSCO to Develop Refuse-Derived Fuel Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Since 2007, POSCO Engineering and Construction Company Limited (POSCO E&C), a subsidiary of POSCO (NYSE:PKX) (Pohang, South Korea), has participated in renewable energy projects. The company has provided engineering and construction services for windfarms, solar power stations and tidal power plants, and now it is preparing to begin construction on its first refuse-derived fuel (RDF) manufacturing plant and RDF-fired power plant. POSCO has signed a deal with the city of Busan, South Korea, to create the joint venture company Busan E&E (Busan, South Korea). According to the terms of the jonit venture, POSCO will hold a 43% stake, while the city of Busan will hold a 57% stake. POSCO E&C will serve as the turnkey contractor for the project.

Construction of both the Busan E&E manufacturing facility and the power plant commenced this month and is scheduled to conclude during the fourth quarter of 2012. POSCO and Busan E&E held a groundbreaking ceremony at the site of the RDF facilities on October 7. Once complete, the $50 million RDF manufacturing facility will produce about 500 metric tons per day of RDF to fuel the power plant. POSCO plans to collect at least 900 metric tons per day of municipal combustible waste from the Busan area.

The RDF-fired power plant is being developed to utilize an Austrian Energy & Environment AG (AE&E) (Vienna, Austria) fluidized bed boiler to be fired with refuse-derived fuel produced by the manufacturing facility. AE&E (Vienna, Austria) signed a $15.4 million contract with POSCO to provide Busan E&E with the necessary equipment to gain a foothold in Asia. When complete, the $163 million Busan E&E power plant will feature Korea's first RDF-fired fluidized bed boiler and will supply 25.15 megawatts to the local grid.

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