8 July 2003 – State-run Korea Electric Power Corp. (Kepco) said Tuesday it is pushing to build two 50,000-kilowatt combined heat and power plants in Henan Province of China by the first half of 2005.
A memorandum of understanding to that effect was signed between visiting KEPCO President Kang Dong-suk and Vice Provincial Governor Shi Jichun in Beijing earlier Tuesday, a KEPCO official said.
KEPCO and the Wozhi No. 1 Power Station in the province will sign the formal $65m investment deal later this month.
When built in Wozhi, a small town, the plants will have pollution-free fluidized bed combustion boilers, the official said.
The investment breaks down to $13.66m for Kepco and $5.86m for the province, with the remaining $45.54m to be borrowed, according to the official.
Kepco will retrieve its investment by operating the stations for 20 years after their completion, the official said.
The Chinese province has been suffering serious environmental pollution because of large amounts of abandoned low-quality coal.
The power stations are designed to use such abandoned coal, thus helping ease environmental problems, the official said.