Bloomberg News

Korea Southern Power to Buy Wood Pellets for Renewables Quota

July 19, 2012

Korea Southern Power Co., a unit of Korea Electric Power Corp. (KEP:US), plans to be the first of the nation’s utilities to buy wood pellets to meet a renewable- energy quota imposed by the government, a company official said.

Korea Southern is seeking to buy 15,000 metric tons of pellets for delivery in October, the official said by phone today, asking not to be identified because the information hasn’t been made public. The purchase is part of plans to buy 50,000 tons in the fourth quarter, an e-mail from the official showed. Bidding will be at 10 a.m. on the tenth day after a tender notice is posted on the company’s website between July 23 and 25, the official said.

South Korea’s 13 power utilities must boost the use of renewable sources after the government imposed an alternative- energy quota this year to reduce emissions. The mandatory quota for the proportion of electricity generated by renewable sources will be increased to 10 percent in 2022 from 2 percent in 2012, according to the Ministry of Knowledge Economy.

More utilities may purchase wood pellets to meet the quota because of the time taken to develop solar and wind sources for power generation, the official said.

The details of the planned purchase are as follows:

----------------------------------------------------------------
Product:      Wood pellets
Quantity:     15,000 tons
Condition:    Supply for Hadong Power Plant
Offers Close: 10 a.m. Korea time ten days after a tender notice
              to be posted July 23-25
----------------------------------------------------------------

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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Companies Mentioned

  • KEP
    (Korea Electric Power Corp)
    • $18.68 USD
    • -0.20
    • -1.07%
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