DL E&C announced on October 24 that it has received an order for the construction of the TW Biomass Energy cogeneration plant at the Yeosu Whachi Complex in South Korea. The total order value is approximately KRW 250 billion. DL E&C will be responsible for design, equipment procurement, construction, as well as commissioning, and is targeting completion by the end of November 2026.
The company has been actively winning orders in the plant sector this year. This month alone, the company won two power plant projects totaling KRW 650 billion, bringing its total new plant orders to date to approximately KRW 3.1 trillion. The company's order target for the plant sector was 3.5 trillion won at the beginning of the year, and expectations for achieving the target are rising.
This project is for the construction of the TW Biomass Energy Power Plant, a joint venture between LG Chem and GS EPS. The plant will generate steam and electricity for LG Chem's Whachi plant in Yeosu. The power generation capacity is 25MW, and it can produce 225 tons of heat per hour.
Biomass power plants use waste wood, which is usually incinerated or landfilled, as raw material in the form of wood chips. Since it utilizes waste materials that are difficult to recycle, it is considered a carbon-neutral energy source in Korea and the European Union (EU). The Yeosu Whachi Biomass Power Plant is expected to reduce carbon emissions by 400,000 tons per year compared to conventional power plants.
DL E&C was awarded the project in recognition of its experience and know-how in the successful construction of the Poseung biomass power plant. The Poseung Biomass Power Plant is capable of generating 43 MW of electricity and 174 tons of heat per hour. It has been in commercial operation since 2018.
The company expects the biomass power market to expand due to global decarbonization policies and rising LNG prices. Based on the successful execution of this project, the company expects to receive additional orders for biomass power plants at home and abroad.
"We plan to expand our eco-friendly power generation portfolio, including biomass, through the successful execution of this project," said Yoo Jae-ho, Head of DL E&C's Plant Business Division.
