Incheon Fuel Cell has finally secured a significant financial milestone for the construction of a hydrogen fuel cell power plant it is planning in Incheon.
Incheon Fuel Cell said it signed a KRW 230.8 billion project financing agreement with five banks including KB Kookmin Bank. With the new capital, the developer will accelerate the construction of a 39.6MW PAFC (phosphoric acid fuel cell) power plant to be located in a general industrial area at Songnim-dong, Dong-gu, Incheon. The plant will produce 305,000MWh of electricity and 160 billion kcal of heat per month. The electricity and heat are enough to support 85,000 and 26,000 homes respectively. The electricity will go to Dong-gu community through a substation in Songhyeon-dong.
The fuel cell power plant project has been on the table since June 2017 when Incheon Metropolitan City, KHNP, Doosan, and Incheon Total Energy Company signed an MOU.
However, the construction of the proposed plant has been delayed almost a year due to some opposition from some community members who say the facility may have safety and environmental issues. The construction work has been suspended since January 2019, and later an agreement between the developers and the opponents was signed in November.
A representative said the developers are planning to complete the facility by June next year. According to the company website, Incheon Fuel Cell’s shareholders include KHNP (60%), Samchully (20%), and Doosan Engineering & Construction (20%). In the project scheme, KHNP will buy REC, and Samchully will provide LNG. Doosan Engineering & Construction is the EPC contractor of the project, and Doosan Fuel Cell will supply fuel cells and LTSA (long term service agreement). Incheon Total Energy Company will buy heat and KEPCO will sell electricity.
The facility will consist of 90 440kW PAFC fuel cells. A total of KRW 234.7 billion will be invested for the 20-year design lifespan power plant, which would take 8,920m2 of land.