South Korean financial investment firm to finance Gunsan-based biomass power plant

South Korea-based Hana Financial Investment Co. will finance a project constructing a 200MW biomass power plant worth $550.7 million (€512m) in Gunsan, west of South Korea.

According to Pulsenews.com, the biomass facility will be led by state-run utility firm Korea Midland Power Co.

Under the terms of agreement, the financial institution will provide funds to the state-run project building a 200MW biomass power plant. Gunsan Bioenergy, a special purpose company created to run the project, is currently taking steps to gain approval to begin the construction in August. The commercial operation of the plant is slated for July 2020. 

Upon completion, the biomass power plant will generate 1,251 gigawatt-hour (GWh) power per annum, which is equivalent to providing electricity to around 260,000 homes. The power plant is also expected to help the country to reduce greenhouse gas emissions by 810,000 tonnes every year. 

Hana Financial Investment created a new financial model through a successful partnership with a power utility company from the very beginning of the project, said Lee Jin-kook, president and CEO of Hana Financial Investment.