Hanwha Energy shifts Gunsan plant’s focus from coal to biomass

Panoramic view of Hanwha Energy’s Gunsan plant. [Courtesy of Hanwha Energy Corp.]

Hanwha Energy Corp. is set to convert its combined heat and power plant in Gunsan from coal to biomass, a move aimed at reducing carbon emissions and meeting the growing demand for eco-friendly power.

According to power and energy industry sources on Tuesday, the key Hanwha Group subsidiary recently secured approval from the Ministry of Trade, Industry, and Energy for the transition. Under the plan, 55 percent of the plant‘s 222-megawatt (MW) capacity will be powered by biomass and will replace the coal currently powering the steam turbines that generate 123 MW.

Hanwha Energy plans to use biomass fuels such as wood pellets and wood chips, which are produced by shredding, drying, and compressing by-products from logging operations, as well as dried fuels made from sewage sludge generated at wastewater treatment plants. These materials are derived from biological organisms such as plants and microorganisms.

The Gunsan plant currently operates a circulating fluidized bed combustion (CFBC) boiler to produce steam and gas, which in turn drives turbines to generate electricity and steam, with the boiler primarily using coal as its main fuel. To reduce carbon emissions during power generation, Hanwha Energy will invest approximately 100 billion won ($75 million) to modify the boiler and accommodate the new fuel as well as completing the necessary facilities for fuel transportation and storage. The company aims to begin full-scale biomass power generation in the fourth quarter of 2026.

The company’s shift toward eco-friendly power generation is driven by the growing demand for renewable energy, particularly from companies committed to the Renewable Electricity 100 campaign as well as environmental, social, and governance management.