South Korea’s GS E&R has signed a memorandum of understanding (MOU) with Korea Southern Power (KOSPO) to jointly develop a district energy modernization project converting aging coal cogeneration plants to LNG (Liquefied Natural Gas) cogeneration facilities, it is reported. The agreement was signed on September 8, 2026.
The agreement covers converting GS E&R’s aging coal cogeneration plants, which supply process steam to national industrial parks including Banwol, Gumi, and Pocheon, into LNG-based cogeneration facilities. The two companies agreed to cooperate on establishing LNG fuel conversion and modernization business plans, reviewing eco-friendly heat and power supply technologies, conducting feasibility studies, and handling permitting, it is reported.
The MOU was signed on September 8, 2026, covering cooperation on industrial parks including Banwol, Gumi, and Pocheon. Specific investment amounts or the scale of conversion facilities have not yet been disclosed.
The investment is reported to be aimed at modernizing the heat and power supply network at industrial parks by converting aging coal cogeneration facilities to an LNG-based system, while reducing carbon emissions.
If fuel conversion projects for cogeneration facilities at industrial parks spread further, related orders for LNG cogeneration equipment and investment in district energy infrastructure modernization could increase together.