Chungnam Establishes Clean LNG Energy Supply Infrastructure in Naepo New Town

Aerial view of the Naepo District Energy Facility. Provided by Chungnam Province.

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is establishing a natural gas district energy facility in Naepo New Town. This comes two years after declaring the transition of the local energy supply method from solid waste fuel to clean fuel LNG.

On the 23rd, the province held a groundbreaking ceremony for the Naepo district energy facility, announcing the opening of the "Clean Energy Era" in Naepo New Town.

The Naepo district energy facility, located in Sapgyo-eup, Yesan County, will have an energy production capacity of 555 MW (LNG and hydrogen) and is scheduled to be completed by June 2023.

The project is being promoted by the province purchasing the project site and leasing it to the project operator, Naepo Green Energy (established by Korea Southern Power and Lotte Construction), for use.

The province has also consulted with the Ministry of Environment and the Korea Water Resources Corporation to supply the water necessary for facility operation as industrial water from Daecheong Dam after completion.

Additionally, to ensure economically viable natural gas supply, the province explained that Korea Gas Corporation and Naepo Green Energy will implement an LNG individual tariff system where prices are set through direct negotiations.

At one point, the project faced the risk of collapse due to conflicts with residents and others. Initially, Naepo Green Energy planned to build a combined heat and power plant using solid refuse fuel (SRF) in Naepo New Town by the end of 2016, but concerns over environmental pollution from the SRF power plant sparked conflicts among residents, putting the project at risk of being scrapped.

However, the province established governance with local residents and the central government to conduct consultations related to the district energy facility, leading to the transition to clean fuel (LNG) in September 2018, marking a new phase for the project.

Yang Seung-jo, Governor of Chungnam Province, said, "The achievement of clean fuel transition through dialogue among residents, businesses, and central and local governments is a result of public-private cooperation," adding, "We expect Naepo Green Energy to grow into a company recognized by the local community through public interest projects."

This content was produced with the assistance of AI translation services.