Doosan inks deal to convert Chile's Mejillones power plant to natural gas

Doosan Enerbility secured a 50 billion won contract with Engie Energía Chile to convert the Chilean power plant's unit to run on natural gas instead of coal.

Pictured is a unit of the Mejillones power station, also known as Infraestructura Energética Mejillones, with a generation capacity of 375 megawatts located in Antofagasta, northern Chile. [DOOSAN]

Doosan Enerbility has signed a 50 billion won ($36.7 million) deal with electricity distribution company Engie Energía Chile to convert the Chilean power plant's unit to run on natural gas instead of coal.

Doosan Enerbility said Tuesday that it will supply and install burners and auxiliary equipment for one of the Mejillones power station’s units in Antofagasta, northern Chile, that has a generation capacity of 375 megawatts. The new equipment will allow the steam plant’s boiler to burn natural gas instead of coal.

The switch will produce the same amount of electricity, but is expected to reduce carbon dioxide emissions by around 40 percent and nitrogen oxide emissions by 70 percent.

The plant will run on coal until 2025, but is required to either retire or convert to other fuels due to Chile's environmental regulations and the French energy company Engie's neutral carbon policy, according to Doosan. Construction for the upgrade will start in the same year and take around six months.

“The conversion minimizes the shutdown period of the power plant compared to retiring the plant and constructing a new one; it is an economic low-carbon solution that also cuts down on costs as it uses the most of the existing facilities,” Sohn Seung-woo, head of Doosan Enerbility’s power service, said.

Natural gases are considered a “bridge fuel” in the transition to renewable energy. The decision to repurpose plants to use natural gas instead of coal is typically driven by stricter emissions standards and lower natural gas prices.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]