World's Biggest Fuel Cell Park Begins Constructon in South Korea

South Korea is moving ahead with the world’s biggest fuel cell park, consisting of 21 fuel cell power plants.

The 58.8 megawatt complex employs FuelCell Energy (Nasdaq: FCEL) designs and components.

The electricity generated will go directly to the power grid, helping the partners comply with South Korea’s Renewable Portfolio Standard (RPS). The heat generated by the fuel cell power plants will be supplied to a district heating system for local use.

Gyeonggi Green Energy Co. will develop and operate the park, beginning construction this year. The ownership consortium includes Korea Hydro & Nuclear Power Co. (49%) – the country’s biggest utility – Posco Energy (15%)- an independent power producer that’s FCEL’s S. Korean partner – and gas distributor Samchully Co. (15%). Investors own the remaining 21%.

"Development of this 58.8 MW fuel cell park illustrates how our stationary fuel cell power plants can be used to support the power grid as the combination of near-zero pollutants, modest land-use needs, and quiet operating nature of these stationary fuel cell power plants facilitates their siting in urban locations," says Chip Bottone, FuelCell Energy CEO.

Earlier this year, FuelCell Energy won a contract for a 230 MW fuel cell plant for Seoul City.

Last year, FuelCell Energy opened an 11.2 MW fuel cell park in  Daegu City, South Korea. The power goes to the grid and the waste heat is used by a municipal wastewater treatment facility under long term power purchase agreements.

"Distributing a number of multi-megawatt fuel cell parks throughout an electrical service area enhances power reliability and energy security for electric utilities and their customer," says Taehyoung Kim, Group Leader of POSCO’s fuel cell division.

IBM is working with POSCO to to develop South Korea’s first renewable energy management system for a smart grid.  

In May, South Korea passed cap-and-trade legislation with a near unanimous vote. The 8th biggest greenhouse gas emitter in the world, the country is the fastest growing source of  emissions among industrialized nations, doubling since 1990. It set a national target of cutting emissions 30% by 2020.