Daelim Energy closes financing for biomass plant

Daelim Energy, part of Daelim Industrial, has achieved project financing to build a biomass power plant within Poseung Industrial Complex in Pyeongtaek, south Gyeonggi Province, South Korea.

The total project investment is estimated at KRW240 billion (US$206 million). Financial closure has been achieved thanks to the participation of a six-bank consortium which will lend a total amount of KRW170 billion (US$146 million). The consortium, including Woori Bank, signed an agreement with Daelim on May 31.

The project involves the development of an energy power plant based on wood waste. It will have a total capacity of 43.2 MW of electricity and 174.3 tons of steam. Once operational, Daelim Energy will deliver power to companies in the industrial zone. 

Daelim Energy, which holds a 63.3% stake in the project, has established Poseung Green Power, a special purpose vehicle (SPV) to develop the project. The project is expected to start commercial operation by April 2018.