Biomass Opportunities in Korea
Ministry of Jobs, Tourism and Innovation
Sookyung Ahn
Senior Manager 1
RPS Development Process
•Dec. 2003, the 2nd Renewable Energy Plan- RPS proposed
•Sep. 2008, RPS clarified - Green Energy Strategy
•Dec. 2008, RPS adopted- The 3rd Renewable Energy Plan
•Mar. 2010, Korean National Assembly passed the RPS bill
•Jan. 2012 RPS takes effect
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RPS Madatory Suppliers
Above 5,000MW (Group I)– 95% Kepco SubsidiariesKorea Hydro & Newclear Power Co., LTD (KHNP)Korea South East Power Co. Ltd. (KOSEP)Korea Midland Power Co., Ltd. (KOMIPO)Korea Western Power Co., Ltd. (KWP)Korea Southern Power Co. Ltd. (KOSPO)Korea East West Power Co. Ltd. (KEWP)
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RPS Mandatory Suppliers
Below 5,000 MW (Group II)– 5% IPPs
Korea District Heating Corp (KDHC)Korea Water Corporation (K-Water)K-PowerGS EPSGS PowerPosco PowerMPC (Ulchon)
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Mandatory Annual RPS Ratio
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Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2022
% 2.0 2.5 3.0 3.5 4.0 5.0 6.0 7.0 8.0 9.0 10.0
RPS Mandatory Volume= mandatory supplier fossil fuel power generation volume
X yearly RPS mandatory ratio
REC Weight RPS Power Generation Volume=New renewable energy
source power generation volume X REC
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0.25 IGCC, Gas
0.5 Waste, landfill gas
1.0 Hydro Power, land wind power, bio energy, RDF power generation, waste gasification power generation, tidal power (Tide embankment)
1.5 Biomass (wood), Ocean wind power (distance less than 5Km)
2.0 Ocean wind power (distance more than 5Km), tidal power (no tide embankment), fuel cell
RPS Calculation
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•RPS Mandatory Volume = Mandatory supplier fossil fuel power generation volume X yearly RPS mandatory ratio
•RPS Power Generation Volume = New renewable energy source power generation volume X REC
•RPS Penalty = (RPS Mandatory Volume – RPS Power Generation) X 40 (Korean Won) (=3.4 cents)/kWh X 150%
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Biomass New Renewable Energy Power Generation
New renewable energy source applied for RPS
Classification RPS applied source RPS not applicable
Power plant usage available
Wood pellets, wood chips, RDF, RPF, TDF
Bituminous coal, anthracite coal
Power plant usage not available
PKS, EFB, rice husks Natural waste
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Biomass New Renewable Energy Power Generation
Dual fuel available source upon the type of boiler
Classification Pulverized boiler Circulating fluidized bed combustion
Dual fuel available Wood pellet, DFB, Rice husks pellet
Wood pellet, EFB, rice husks pellet, PKS, wood chip
Dual fuel not available PKS, wood chip
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Biomass New Renewable Energy Power Generation
Projection on wood pellet usage (pulverized boiler: 3% dual fueling assumption) :
Coal consumption volume 90M ton x dual fueling ration 3% x (bituminous coal 6,000/pellet 4,500) = 3.6M / year
Woodpellet 1ton = 2,000 kWh in power generation
Co-firing: 2,000 kWh/ton x 1.0 = 2,000 kWh/ton in RPS
Full firing: 2,000kWh/ton x 1.5 = 3,000 kWh/ton in RPS
(co-firint biomass:1.0/ full firing biomass:1.5)
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Portfolio & Focused Fields for RPS
Field of energy
Offshore wind
Tidal Energy
Fuel Cell
Onshore wind
Solar Hydraulic
Biomass
IGCC Biogas
LFG Wastes
% 38.8 20 12.1 8.1 7.5 6.8 2.1 3.1 0.8 0.4 0.4
Kepco Overview
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•Kepco (Asset: 99.6 trillion won, Sales: 39.4 trillion won
Company name
KHNP KOSEP KOMIPO WP KESPO WESPO
Core Biz Nuclear & Hydro
Thermal Thermal Thermal Thermal Thermal
Market Share
32% 13% 12% 11% 13% 12%
Asset 30 t won 5.5 t won 5.1 t won 4.5 t won 5.0 t won 4.5 t won
Sales 5.8 t won 4.2 t won 4.8t won 4.7 t won 5.2 t won 4.6 t won
Focuse Fields by Genco
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Field Genco A Genco B Genco C Genco D Genco E Genco F
Tidal energy
√ √ √ √
Fuel cell √ √ √ √ √ √
Onshore wind
√ √ √ √ √ √
Solar √ √ √ √ √ √
Biomass √ √ √ √ √
IGCC √
Wastes √ √
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Preparation of Biomass by GencoGenco A
Plan to co-firing in fluidizing bed boiler (200MW x2) as of 2012: 10% wood chip or /and pellet, 150,000 ton/year
Construction of full biomass powr plant (30MW x 2) is in progress: wood chip, 180,000ton/year
Genco B
Construction of fluidizing bed boiler (500MW x2) for co-firing with pellet will be completed:
5% pellet, 400,000ton/year
Genco C
Commission of fluidizing bed boiler (340MW x1) for co-firing with pellet is in progress:
5-10% pellet, 300,000ton/year
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Preparation of Biomass by GencoGenco A, B, C, D, E
Review of co-firing with pellet in pulverized coal boiler
Capacity: each of 500MWx8 units, 5 companies
Usage of coal by Genco in 2010: 80 million ton/year
Expected rate of co-firing with biomass: 3-5%
Combined Heat & Power Plant (CHP)
Usage of wood chip by CHP boiler: 600,000ton/year
CHPs are used in paper mills, dye houses & chemical plant with heat
If price terms are satisfactory, CHPs are to use biomass
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Types of Biomass by GencoWood Chip
Source country: Korea metropolis, forest & development
Price: 20-100USD/ton
Heat Value: 2,500-3,500 kcal/kg
Storage: inside+outside
Barrier: limited quantity in the country
Wood Pellet
Source country: Canada, Indonesia, Malaysia, Russia, Australia, South Africa, Brasil
Price: 150-200USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside (silo, dome, shed)
Barrier: storage, moisture , shipping
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Types of Biomass by GencoPKS
Source country: Indonesia, Malaysia
Price: 100-150USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside+outside
Barrier: limited quantity in the world
EFB Pellet (Empty Fruit Bunch)
Source country: Indonesia, Malaysia
Price: 130-180USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside
Barrier: waste, storage, moisture , shipping
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Types of Biomass by GencoCorn Pellet
Source country: Indonesia, Malaysia
Price: 100-150USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside
Barrier: waste, storage, moisture, shipping
Rice Husk Pellet)
Source country: Vietnam
Price: 100-150USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside
Barrier: waste, storage, moisture , shipping
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Types of Biomass by GencoBio Coal
Source country: Canada, Indonesia, Malaysia
Price: 150-200USD/ton
Heat Value: 5,000-6,000 kcal/kg
Storage: inside + outside
Barrier: shipping, limited production
Rice Husk Pellet
Source country: Vietnam
Price: 100-150USD/ton
Heat Value: 4,000-4,500 kcal/kg
Storage: inside
Barrier: waste, storage, moisture , shipping
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Genco’s consideration on BiomassRelative competitiveness of biomass• Cost on production & transportation
• Long-term supply capability
• Legal consideration:
biomass is usable in power plant, but PKS,. EFB, rice husk are not allowed for power plant because they are categorized as wastes
July 2012, Min. Env. Will review the current categorization
• Technological concerns: tube corrosion, slagging, effect of boiler combustion should be reviewed
• Handling issues: facility of unloading, storage, conveyor systems