Anin power station

From Global Energy Monitor

Anin power station (강릉 안인) is a proposed 2,080-megawatt (MW) coal-fired power station in Gangwon Province, South Korea.

Location

The map below shows where the plant is proposed to be built in the city of Gangneung.

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Background on Plant

The Anin Thermoelectric Power Plant is proposed to be located just south of the city of Gangneung in Gangwon Province, South Korea. It would consist of two 1,040 MW ultra-supercritical units, which were initially planned to be completed in 2019 and 2020.[1][2]

The project was permitted in October 2015. In January 2017 it was reported that the plant was held up due to ongoing disputes over land compensation. Gangneung Eco Power said the company expected construction to begin the first half of the year and be completed by 2022. The Kangnung Environmental Movement Coalition and some members of the parliament of the Gangneung City Council are calling for the construction plan to be canceled.[3]

Possible cancellation or replacement with gas

With the election of Moon Jae-in as president in May 2017 it is unclear the project will go forward, as he campaigned on suspending coal-fired power plants less than 10 percent into construction, which would include Anin.[4][5] Plant sponsors argue the license application has been made and development is 14% complete, and the plant should therefore be exempted from any suspension on coal plant construction. However, the plant has yet to be licensed and, as of May 2017, no construction has begun.[6]

In September 2017 the government released a statement saying it will push to transform coal-fired power plants less than 10% constructed into LNG-fired power turbines.[7]

Construction begins, coal plant allowed

In June 2017 it was reported that the plant was under construction and 15% complete, and therefore exempt from the government's plan to convert coal units less than 10% complete to gas.[8]

In March 2018, Samsung was awarded the contract to construct the plant.[9]

Operation is planned for 2023.[10] In June 2020, it was reported the plant was 45% complete.[11]

As of August 2021, the power plant was 80% complete. In September 2021, there were disagreements over a 156.4 billion won budget prepared by the government and industry to help support the community impacted by the proposal.[12]

The plant’s costs also increased due to defaults from subcontractors and other issues.[13]

Opposition

In January 2021, sponsor Gangneung Eco Power, proposal developer Samsung C&T, Aninjin fishing village, and the Gangneung City Conflict Mediation Committee reached an agreement regarding compensation for fishing rights by the proposed plant, 6 years after conflicts first started. However, in August 2021, the Aninjin fishing village announced it would resume shellfish net operations in the waters by the plant’s construction, creating additional conflict.[14]

In September 2021, civic groups held a press conference against construction of the plant. They noted that the plant will emit about 15.3 million tons of greenhouse gas annually, which is more than the 12.25 million tons of greenhouse gas that the current government is planning to reduce by spending 73 trillion won over five years through its Green New Deal. In other words, it would be more effective and reasonable to stop the construction of coal-fired power plants than to spend money on other initiatives. They also highlighted the plant is expected to emit 2,764 tons of air pollutants annually, leading to 1,050 premature deaths over its potential 30-year lifetime.[12]

Financing

In May 2018, financing for the project was closed. 34 financial institutions provided debt financing in the amount of KRW 4.7 trillion (approx US$4.2 billion).[15] Groups that provided loans to the power station included:

  • DB Insurance: KRW 90 billion (US$81 million)[16]
  • KB Securities: KRW 300 billion (US$270 million)[16]
  • Korean Federation of Community Credit Cooperatives: KRW 32 billion (US$29 million)[16]
  • Kookmin Bank: KRW 105.2 billion (US$94 million)[16]
  • National Agricultural Cooperative Federation: KRW 100 billion (US$90 million)[16]
  • Nonghyup Group: KRW 100 billion (US$90 million)[16]


Hyundai Marine & Fire Insurance and KB Insurance provided both underwriting and project finance for the project, although exact amounts are uncertain.[16]

Project Details

  • Sponsor: Gangneung Eco Power
  • Parent company: KEPCO
  • Developer: Samsung
  • Location: Gangneung city, Gangwon Province
  • Coordinates: 37.733159, 128.979405 (exact)
  • Status: Construction
  • Capacity: 2,080 MW (Units 1&2: 1,040 MW)
  • Type: Ultra-supercritical
  • Projected in service: 2023
  • Coal Type:
  • Coal Source:
  • Source of financing: KRW 4.7 trillion (US$4,264,575,572) in debt from 34 financial institutions,[15]
  • Planned Unit Retirements: Units 1 and 2 are scheduled to close by 2052.[17]

Articles and resources

References

  1. "Doosan Heavy Industries & Construction Wins 710 Billion Won Order for Domestic Power Plant," Business Korea, Apr 2, 2015
  2. "HHIC ready to seal onshore plant deal," KOMEC, 2015-09-23
  3. "강릉 안인 화력발전소 건설사업 추진 '탄력," Yonhap News, January 18, 2017
  4. "S. Korea’s coal-fired power plant builders at risk of losing millions," Pulse, 2017.05.17
  5. "3개 정당 대선후보, 강릉화력발전소 건설 백지화 찬성," Gangwon Future Newspaper, April 26, 2017
  6. "R삼척원전 백지화 확실시-투,"] MBC, May 11, 2017
  7. "S Korea to tackle pollution by cutting coal, diesel use, switching to LNG," Platts, 26 Sep 2017
  8. "강릉안인화력발전소, LNG전환 NO~ 석탄화력발전소 YES," 강릉시의회 자유한국당 기자회견, June 5, 2017
  9. "삼성물산, 3조7800억 규모 강릉안인화력 발전소 건설 계약 체결," Newsis, 2018-01-03
  10. "[강릉소식 안인 화력발전 민원 총괄 지원본부 구성,"] 송고시, 2020-02-05
  11. "신규 민간 석탄발전소 건설은 속도 붙는데… 표준투자비 책정 논의는 '제자리'," cnews.co.kr, 2020-06-10
  12. 12.0 12.1 "길 닦고 컨벤션 센터 짓는데 1564억원? 강릉 안인화력 지원금 용처 갈등,” Hani, September 2, 2021
  13. “'탈 석탄' 삼성물산, '석탄'에 단단히 발목 잡혔다,” Bizwatch, October 28, 2021
  14. “끝난 줄 알았는데... 강릉안인발전소 건설 또 갈등,” Oh My News, August 6, 2021
  15. 15.0 15.1 "Korea's Largest Project Financing Transaction to Date for Gangneung Coal Thermal Power Plant Project". May 18, 2018.
  16. 16.0 16.1 16.2 16.3 16.4 16.5 16.6 Tracing 12 Years of Korea’s Coal Finance Addiction, Korea Sustainability Investing Forum, Jan. 2021
  17. Assessing the Health Benefits of a Paris-Aligned Coal Phase Out for South Korea, Annex II (Unit-level phase out schedules), Climate Analytics, May 2021

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