South Korea approves 1.05GW gas power plant for Yongin Semiconductor Cluster

South Korea's ministry of trade, industry and energy has granted final approval for the construction of a 1.05GW gas-based combined heat and power (CHP) plant within the Yongin Semiconductor Cluster, according to a BusinessKorea report published on August 9.

The project is a joint venture between SK E&S and Korea Midland Power and represents a significant step forward for the Yongin Semiconductor Cluster District Energy Project. This development follows the submission of a power generation business permit application by SK E&S in November last year.

Initially, the ministry had expressed reservations about the project due to concerns over carbon neutrality, particularly in the context of the draft of the 11th Basic Plan for Electricity Supply and Demand announced in May. The plan suggested a government strategy to limit new gas-based power generation to a total of 2.5GW over the next 15 years, until 2038.

Despite these concerns, the joint venture plans to establish a special purpose company soon and begin construction, with the goal of completing the plant in the second half of 2026, according to BusinessKorea.

The Yongin plant is set to replace the aging Boryeong combined cycle power plant, which is scheduled for closure by 2027. The new facility will not only supply heat to the SK Hynix semiconductor manufacturing plant within the Yongin Semiconductor Cluster but also provide stable district heating to approximately 600,000 households daily.