Gwangyang Steelworks Achieves Energy Savings Through Thermal Power Equipment Improvement

Reducing Energy Purchase Costs by 12 Billion KRW through Modernization Including Replacement of Aging Equipment
Committed to Economic Revitalization through Contracts with Local Companies

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO Gwangyang Steelworks (Director Kim Ji-yong) invested 83.5 billion KRW to replace the aging equipment of the No. 1 thermal power plant, enhancing its performance, and completed the facility modernization with a completion ceremony held on the 10th.

Gwangyang Steelworks generates 95% of the electricity needed at the steelworks through self-generation using by-product gas from the steel production process in thermal power generation and by-product combined power generation, as well as LNG combined power generation using natural gas.

Through this modernization, the aging equipment of thermal power generation units 1 and 2, which supply 200MW of electricity, was replaced.

Thermal power generation is a method of generating electricity by burning fuel in a boiler to heat water and produce steam, which then rotates a turbine to generate power.

By replacing boiler parts that have reached their end of life to restore performance and upgrading to turbines with the latest technology, the power output increased by +20MW (from 200 to 220MW), and power generation efficiency improved by 2.3%, expected to reduce annual energy purchase costs by 12 billion KRW.

Gwangyang Steelworks also contributed to revitalizing the local economy, which has been stagnant due to COVID-19, by collaborating with companies in the Gwangyang area possessing specialized technical skills. During the construction period, more than 30,000 construction workers participated, contributing to job creation in the Gwangyang region.

The completion ceremony was held on a small scale to prevent the spread of COVID-19, with 14 attendees including Kim Ji-yong, Director of Gwangyang Steelworks, executives and employees from POSCO ICT, KEPCO KPS, BHI, and equipment suppliers.

Kim Ji-yong, Director of Gwangyang Steelworks, said, “I hope this modernization of power generation facilities will make the plant a leader for the next 50 years,” and added, “Above all, I would like to express my gratitude to the executives and employees who worked hard to complete the project without accidents during the construction period.”

Meanwhile, in addition to the power generation facility modernization, Gwangyang Steelworks newly installed equipment in January to recover heat generated from the slab heating process at the No. 1 hot rolling mill, reducing the steelworks’ annual energy purchase costs by 1.1 billion KRW, demonstrating significant efforts to improve energy efficiency through facility improvements.

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