The consortium of 5 companies including Daesung Energy will construct and operate RDF plant in Daegu.
Daesung Group (Chairman: Kim Yeong-hun) concluded on February 22 the execution agreement with the Daegu City government for the project of constructing a refuse derived fuel (RDF) production plant in Daegu. The project of constructing the plant of producing energy by recycling domestic wastes requires a total fund of 179.6 billion won.
The consortium consisted of Daesung Group’s affiliates, such as Daesung Energy and Daesung Holdings, and GS E&C proposed in November 2008 this project to Daegu City government, and Public and Private Infrastructure Investment Management Center (PIMAC) in Korea Development Institute (KDI) conducted feasibility and eligibility study of the project. And the regulatory decision on the project was made as its proposal was resolved by the private investment program deliberation committee of the Ministry of Strategy and Finance in December 2012.
The government will invest 36.4% (65.4 billion won) of the total project cost of 179.6 billion won, while private companies will invest 63.6% (114.2 billion won). Members of the consortium include Daesung Energy (18% of stakes in the project), Daesung Holdings (10%), GS E&C (40%), Hwasung Industrial (17%) and Daelim Industrial (15%). And these companies will jointly invest to establish a special purpose company (SPC), Daegu Green Energy (temporary).
The consortium plans to start constructing the plant in the first half of this year and complete by December 2015. Daegu Green Energy will operate the facility for 15 years after construction is completed, and Daesung Energy will assume the role as the commissioned operating company among members of the consortium.
When it is built in space of 50,132 square meters at the landfill site in Bangcheon-ri, Daegu, the RDF production facility will treat 600 tons of domestic wastes a day. The plant will produce solid fuels by sorting out combustible wastes from domestic wastes, and supply them as fuels for power generators and boilers, generating heat and electric power.
Advanced countries, such as European countries and Japan, already commercialized RDFs a decade ago, using domestic wastes as energy sources.
As domestic wastes, which have been buried and incinerated, will be recycled, new energy sources will be developed while extending lifespan of the landfill site in Bangcheon-ri. It will also reduce harmful pollutants, such as landfill gas and leachate.
And generation of heat and electric power using these RDFs is expected to replace import of crude oil in value of 25.1 billion won annually. Moreover, it is expected to gain profits by selling certified emission reductions (CERs) and renewable energy certificates (RECs) with recognition of Clean Development Mechanism (CDM) projects by the United Nations Framework Convention on Climate Change (UNFCC).
Daesung Group is now equipped with cutting-edge technologies and expertise in recovering energy from domestic wastes by operating various eco-friendly businesses, such as recovering energy from landfill gas at Bangcheon Landfill Site, production of compressed natural gas (CNG) using bio-gas generated at comprehensive food waste treating facilities, and the RDF production plant.
Chairman Kim Yeong-hun of Daesung Group said, “RDF production is meaningful as it shows that waste can be an important energy resource at this time when we need to increase energy sources. The company will put effort to turn the hygiene landfill site in Bangcheon-ri into an eco-friendly green energy park, while actively cooperating with the Daegu City authority to build a low carbon green environment in Daegu, which will host the World Energy Congress in this year.”