Posco launches SE Asia?s first off-gas power plant

A unit of South Korea?s Posco Energy has officially inaugurated the completion of a 200 megawatt gas waste power plant within an integrated steel mill complex in Cilegon, Banten, The Jakarta Post reported Saturday.

The plant, built and operated by PT Krakatau Posco Energy (KPE), uses gas emitted as a byproduct of Krakatau Posco?s integrated steel mill, which officially began operation in December. The power plant was inaugurated on Thursday.

KPE is a joint venture between South Korea?s Posco Energy and PT Krakatau Daya Listrik (KDL), a PT Krakatau Steel subsidiary, with shares of 90 percent and 10 percent, respectively.

Referred to as an integrated steel mill off-gas power plant, the power plant, the construction of which started in September 2011, is the first of its kind in Southeast Asia.

?Through the inauguration of the power plant, Posco Energy will actively take part in the development of power projects in Southeast Asia and expand its global presence in cooperation with KDL,? Posco Energy chief executive officer Oh Chang Kwan said.

By using gas emissions from the integrated steel mill, the plant will help the mill obtain an energy recycle rate of 98 percent and reduce its carbon dioxide emissions by up to 1 million tons per year.

South Korean steel giant consortium Posco owns 70 percent of Krakatau Posco, while the remaining 30 percent is owned by state-owned iron and steel producer PT Krakatau Steel.

Krakatau Posco?s current integrated mill has a production capacity of 1.8 million tons of slab and 1.2 million tons of steel plates a year and will double production to 6 million tons in total after the completion of the second phase of development.(*)