Energy in Korea: Oil, Gas and Nuclear Technology

[hakz2007]

South Korea to Spend $36 Billion on Clean Energy by 2015 to Gain Markets

South Korea, Asia’s fourth-biggest polluter, said the government and private sector aim to invest 40 trillion won ($36 billion) by 2015 in renewable energy to gain from growing demand and cut reliance on fossil fuels.

The government will spend 7 trillion won and private companies may invest 33 trillion won during the next five years, the Ministry of Knowledge Economy, which overseas South Korea’s energy policies, said in an e-mailed statement today.

The spending plan includes the 22.4 trillion won that the presidential office said in July the nation’s 30 largest industrial groups will invest in alternative energy by 2013. The global renewable energy market may more than double to $400 billion by 2015 and grow to $1 trillion by 2020, similar to the automobile industry, according to South Korea’s energy ministry.

Asia’s fourth-largest economy, which heavily depends on computer chips and shipbuilding, aims to secure a 15 percent share of the global solar and wind power market to provide new sources of growth, the knowledge ministry said. The investment will create 110,000 jobs and $36.2 billion in exports, it said in the statement.

The government, which invested 2 trillion won in the past three years, will spend 3 trillion won in developing solar and wind power technologies by 2015. It will also spend 9 trillion won by 2019 building an offshore wind farm with capacity of 2.5 gigawatts, the ministry said.

China, Japan and India have larger economies and emissions of greenhouse gases blamed for global warming than South Korea.

http://www.bloomberg.com/news/2010-1...n-markets.html

[hakz2007]

Lee sees renewable energy sector as future growth engine

SEOUL, Oct. 13 (Yonhap) -- President Lee Myung-bak said Wednesday the development of solar, wind power and other forms of substitute energy sources will become the backbone of South Korea's future economy.

"Given the sharp growth in the world's market, we will be able to nurture solar energy and wind power industries as 'the second semiconductor' and 'the second shipbuilding' industries and make them the pillar of the future national economy," Lee said in a pan-governmental meeting on green growth held at the Convention and Exhibition Center (COEX) in southern Seoul under the theme of "The Power of Opening the Future: Sun, Wind and Water."


President Lee Myung-bak speaks during a meeting of the Presidential Committee on Green Growth in Seoul on Oct. 13. (Yonhap)

The Lee administration has been staging a "low-carbon, green growth" campaign to reduce heavy dependence by Asia's fourth-largest economy on oil and gas imports and tackle greenhouse gas emissions.

The president numerated accomplishments, including the export of nuclear power plants to the United Arab Emirates and the development of electric cars, hydrogen fuel cells and light-emitting diodes (LED).

Lee also stressed the importance of securing a stable supply of water and said his government will map out a comprehensive water resource management plan for the upcoming century.

"As the water industry is emerging as the core industry in the 21st century, South Korea, based on its experience in managing water resources, should nurture the water industry through an active push for making inroads into foreign markets and make contributions to the international community," he said.

"We all should have a deep perception that in the era of climate change, the value and importance of sun, wind and water as natural capital are growing bigger and bigger."

http://english.yonhapnews.co.kr/nati...01800315F.HTML

[hakz2007]

IBM Develops South Korea's First Renewable Energy Management System

SEOUL, South Korea, Nov. 4, 2010 /PRNewswire/ -- IBM (NYSE: IBM) today announced its collaboration with POSCO ICT to develop South Korea's first renewable energy management system for a smart grid. As part of South Korea's national Smart Grid initiative to achieve the vision of "Low carbon, Green growth," the intelligent renewable energy management system will be installed as a showcase at the Smart Grid Demonstration Complex located on Jeju Island.

(Logo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO)

(Logo: http://www.newscom.com/cgi-bin/prnh/20090416/IBMLOGO)

Driven by a desire for greater energy security, sustained economic growth, and reduced environmental impact, the Korean government, together with the country's leading technology companies, has embarked on a bold smart grid strategy. The Smart Grid initiative, spearheaded by the Jeju Island Smart Grid Demonstration Project, is a comprehensive program that covers Smart Power Grid, Smart Consumers, Smart Transportation, Smart Renewable Energy, and Smart Electricity Services. Its goal is to promote economic growth for the country and set a foundation for Korean companies' technological strength in the global smart grid market.

"POSCO ICT has identified the smart grid business as a key future growth engine," said Choi Chang-ho, Executive Director, POSCO ICT's Smart Grid Promotion Group. "Through the collaboration with IBM, POSCO ICT will be able to take a step forward as a leading company in the domestic smart grid market."

In addition to Jeju Island, POSCO ICT will also leverage IBM's consulting capability and business analytics and software solutions to develop a renewable energy management system for use in manufacturing facilities such as steel and chemical plants, new industrial complexes and smarter buildings in Korea.

"Collaborating with POSCO ICT to develop South's Korea's first smart grid system will advance the development of domestic smart grid technology," said Kim Nam-gyu, executive director, IBM Korea's Communications Sector. "IBM will continuously strive to play a significant role to assist Korea in leading these initiatives globally through joint investments and collaborative research."

The vision

POSCO ICT set up a smart grid business unit earlier this year, recognizing that a renewable energy management system is vital for a smart grid solution – it enables production of renewable electricity using natural resources such as wind and solar, while being securely interconnected with existing power networks.

In collaboration with IBM, POSCO ICT will adopt IBM business analytics software to build an intelligent renewable energy management system that can enable informed decisions on power generation based on quantitative analysis. The new system will help establish optimum countermeasures for possible changes in energy supply and demand through a prior scenario analysis. It can integrate management efficiency initiatives and quickly propose fine-tuned plans for the management of energy.

The system will be able to forecast the electricity demand to ensure efficient and accurate production of electricity. IBM will also set up a Web portal for electricity services for customers and system users. IBM will provide products for integrating data across systems to ensure optimized interconnections of the new system with external systems. The project is expected to be completed in December.

POSCO ICT also plans to create a standard for energy management that recognizes that limited resources must be used efficiently, and manage the optimized energy efficiently.

IBM is leading Korea's smart grid development through joint investments and collaborative research. IBM contributed to the Korean Ministry of Knowledge Economy's smart grid roadmap draft, and was a consultant to establish a roadmap for the Jeju Smart Grid Demonstration Complex in alliance with KEPCO and KDN last year.

IBM software includes Cognos Business Intelligence, ILOG OPL-CPLEX, WebSphere Enterprise Service Bus (ESB) and DB2 database products.

http://www.prnewswire.com/news-relea...106691178.html

SK Energy Plans to Shut South Korean Crude Units for Maintenance in 2011

SK Energy Co., South Korea’s biggest oil refiner, plans to shut two crude processing units at its Ulsan refinery and one in Incheon for maintenance next year, a company official said.

The refiner will close the 60,000-barrel-a-day No. 1 crude distillation unit in Ulsan for 40 days between July and August and the 260,000 barrel-a-day No. 5 unit for about a month starting in May, said the official who asked not to be identified because he isn’t authorized to talk to reporters about the plans. At its Incheon complex, SK will shut the 200,000 barrel-a-day No. 2 unit for about 40 days starting June.

S-Oil Corp., South Korea’s third-biggest oil refiner, will shut the 240,000 barrel-a-day CDU at its Onsan refinery in May while Hyundai Oilbank Co. plans to close the 110,000 barrel-a- day No. 1 CDU at its Daesan refinery in March, officials from the two companies said. Shin Jung Kuk, a spokesman for S-Oil, said the company hasn’t decided next year’s maintenance schedule.

The information from the refinery officials suggests at least 17 percent of South Korea’s capacity will be shut in May, which is likely to be the peak period for maintenance next year. This year, most maintenance was done in the second half of April. South Korean refiners usually shut units for checks once every three years.

http://www.bloomberg.com/news/2010-1...e-in-2011.html

[hakz2007]

Korea to Improve Energy Self-Sufficiency

SEOUL—South Korea said Wednesday that it aims to greatly improve its energy self-sufficiency by developing and investing more in overseas projects to meet the growing needs of its economy.

Asia's fourth-largest economy plans to have 30% of its oil and gas imports in 2019 come from its own assets overseas, compared with 9% last year, the Ministry of Knowledge Economy said in a statement on its long-term overseas-energy-development plan. "Prices of oil, gas and minerals are all set to rise in the coming years due to imbalances in supply and demand. Demand from emerging market economies, in particular, is rising with the recovery of the global economy," the statement said.

The government will push to enlarge Korea National Oil Corp. and other state-run energy companies, seek to buy promising assets and further develop overseas production facilities to enhance the country's energy self-sufficiency, it added.

Imports account for most of South Korea's energy needs, but the country has been aggressive in acquiring assets overseas and in the exploration and development of crude and natural-gas fields it has already acquired.

In its search overseas, South Korea is pitted against some formidable Asian competitors, which may result in it having to pay top dollar for prize assets.

Rising economic powerhouses China and India have long encouraged their state and private companies to look overseas to cut heavy reliance on imports.

China, in particular, has scored well, through a combination of government-backed incentives and loans for target countries, enormous financial reserves and improving skills in negotiating sometimes highly complex and competitive deals.

So far, South Korea has focused on smaller or midsized investments, while China, in contrast, has racked up a string of oil and gas deals this year in the range of $3 billion.

"The regional competition to ensure energy security is getting tougher," said Lee Jung-hun, an analyst at Hana Daetoo Securities. "South Korea faces stronger rivals such as China and India. It all boils down to how to fund [mergers and acquisitions] and development projects. In that sense, Korea is still an underdog."

He said the government's target of 30% for its energy self-sufficiency ratio by 2019 was "very aggressive," given that its current ratio for crude stands at 4%.

The country aims to increase crude output from its overseas fields to 699,000 barrels a day in 2019 from 136,000 barrels last year, while raising natural gas production to 39,000 metric tons from 14,600 tons under the long-term plan.

South Korea is the world's second-largest liquefied-natural-gas importer after Japan.

The country will also increase its self-sufficiency ratio for six strategic minerals, including uranium, nickel and iron ore, to 42% of total imports in 2019 from 25% last year, while raising the ratio for rare earths and lithium to 26% from 7.3%, the ministry said.

The ministry also said the government will increase its energy budget and extend more financial assistance and tax benefits to companies exploring overseas resource development projects.

South Korea plans to raise energy-related government guarantees and loans via Korea Trade Insurance Corp. and Export-Import Bank of Korea to 8.5 trillion won (US$7.3 billion) in 2013 from 5.12 trillion won this year.

The ministry also said Korea's pension fund, the National Pension Service, will actively invest in overseas energy development projects in the coming years.

State-run KNOC said last week it plans to spend US$2 billion to US$3 billion to increase its crude-oil and natural-gas production capacity to 300,000 barrels of oil equivalent a day by 2012, from 200,000 barrels now, through asset purchases and exploration of existing overseas oil and gas assets.

As part of these efforts, one of KNOC's overseas units last week acquired the Canadian assets of Hunt Oil Co. for 525 million Canadian dollars (US$516 million). It followed KNOC's £1.87 billion (US$2.90 billion) hostile takeover of U.K. oil and gas company Dana Petroleum PLC in September.

http://online.wsj.com/article/SB1000...990231338.html

[hakz2007]

S.Korea firms to raise renewable energy investment-govt

Seoul, January 25 - South Korea, heavily dependent on energy imports, said on Tuesday domestic firms were likely to beef up investment in renewable energy businesses this year to double their exports of products in the sector.

About 100 firms in Asia’s fourth-largest economy are expected to invest 4.5 trillion won ($4.03 billion) in renewable energy this year, up 23 percent from the previous year, the Ministry of Knowledge Economy said in a statement.

Firms in the South Korea, the world’s No.5 crude oil importer and No.2 liquefied natural gas (LNG) buyer, were projected to export $9 billion of renewable energy products, up 91 percent from last year, the ministry statement said.

One of the world’s fastest-growing carbon polluters, South Korea is seeking to shift from its dependence on fossil fuels by expanding investment in green resources.

The Korean government said last month that it would boost financial support for the new and renewable energy industry this year by nearly a quarter.

South Korean President Lee Myung-bak also said the country would strengthen its new and renewable energy sectors, expecting the sectors to achieve exports of $40 billion in 2015 compared with $4.6 billion in 2009.

In October last year, the South Korean government said it would spend 40 trillion won by 2015 in a combined push by the public and private sectors to boost renewable energy resources.

http://www.eco-business.com/news/201...nvestment-gov/

[èđđeůx]

Korea Real Time: South Korea Sticks With Its Nuclear Plans

Japan’s nuclear crisis has provoked jitters over nuclear safety around the world. And South Korea is no exception in world-wide efforts to dispel increasing public anxiety over nuclear power plants.

But at the same time, South Korea is sticking by its nuclear plans.

“There is no change in the government’s plan for expansion of nuclear power plants,” said Yun Choul-ho, president of the Korea Institute of Nuclear Safety, said during a press briefing Tuesday.

“We believe there is no alternative to nuclear energy at this stage, and instead we can take this opportunity for reviewing nuclear safety, as well as for expanding exports of nuclear technology,” he said.

He said the government plans a comprehensive check-up on the safety of nuclear power plants in Korea, including their ability to withstand natural disasters like earthquakes and tsunamis. South Korea is not quake-prone. A relatively big earthquake with a 5.0 magnitude struck in 1978, which left two injured and destroyed around 100 buildings.

Currently 21 nuclear power plants are under operation, seven under construction, and many more on the drawing board, according to the government’s long-term energy plan.

The expansion of nuclear energy has been integral to President Lee Myung-bak’s energy policy. Late last year, the government said it will get 35 nuclear power plants up and running by 2024. If everything goes as planned, nuclear electricity will make up about 50 % of the nation’s electricity consumption, up from the current 30%.

The government seems to believe that the benefits from nuclear energy are bigger than potential woes, despite the crisis in Japan and ensuing decisions by other countries, such as Germany, to shutter nuclear reactors or put off a decision to extend the operation of existing reactors.

“Up until now, not a singe case that could be classified as an accident has occurred, further proof that we have the best safety practices in the world,” Mr. Lee said during his bi-weekly radio address on Monday.

Mr. Yun noted the country’s nuclear reactors are relatively safe. Its nuclear industry has had only minor incidents that would lead to automatic shutdown.

One way to gauge the performance of a power plant is ‘unplanned capability loss factor,’ or the ratio of unplanned outages of energy production during a given period of time. According to the website of International Atomic Energy Agency, South Korea’s ratio is 0.5% compared to the world-wide average of 5.5% in 2009, the latest for which the data are available.

[hakz2007]

Greenpeace urges Korea to give up nuclear energy

Greenpeace urged Korea to stop constructing nuclear power plants Tuesday and develop alternative and renewable resources to avoid the nuclear accident that hit Japan, citing findings from its radiation monitoring there.

“As we can see in the case of Japan, accidents still and will happen. And the impact is huge,” Greenpeace East Asia Executive Director Mario Damato said during a news conference on the organization’s flagship Rainbow Warrior. “We’re not telling Korea to go to the Stone Age or something, but to shift to alternative energy instead of nuclear energy.”

More:http://www.koreatimes.co.kr/www/news...117_88491.html

South Korea Aims To Grab 18 Pct Of Global Green Energy Market By 2030

SEOUL, June 7 (Bernama) -- South Korea will seek to grab 18 percent of the global green energy market by 2030 by developing key technologies and creating a favorable domestic environment, Yonhap news agency reported quoting the government as saying Tuesday.

The new road map calls for concentrated efforts in 15 eco-friendly research and technology (R&D) areas in order to enhance industrial competitiveness and help create more jobs, the Ministry of Knowledge Economy said.

More:http://www.bernama.com/bernama/v5/ne....php?id=592012

[hakz2007]

Asia Fuel Oil-S.Korea WP buys 30,000 T for Nov

Oct 12 (Reuters) - Korea Western Power Co Ltd (WP) has bought 30,000 tonnes of high-sulphur fuel oil from Vitol for arrival between Nov. 1 and 18 via a spot tender closed on Wednesday, sources at the utility and industry said on Thursday.

The purchase was made at $686.35 per tonne on a cost-and-freight (CFR) basis for the maximum 2.59 percent sulphur supply to Pyong Taek Power Plant, they said.

More: http://www.reuters.com/article/2011/...7LC1SR20111012

[hakz2007]

Petroleum product consumption hits record high in 2011

SEOUL, Jan. 30 (Yonhap) -- South Korea's petroleum product consumption surged to record high levels in 2011 despite the spike in international crude oil prices, data showed Monday.

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[everywhere]

22nd nuclear reactor enters commercial operation in S. Korea
(Shanghai Daily/Xinhua, July 20)

SEOUL, July 20 (Xinhua) -- A new nuclear reactor has gone into commercial operation in South Korea, raising the number of nuclear reactors in the country to 22, the government said Friday.

The Ministry of Knowledge Economy said the New Gori 2 reactor in northern Busan, 450 kilometers southeast of Seoul, began commercial operation on Friday after completion of safety inspections.

more: http://www.shanghaidaily.com/article...a.asp?id=84363

[everywhere]

Bill Gates to Develop New Nuclear Reactor with Korea
(Chosun Ilbo, Aug. 20)

Microsoft founder Bill Gates has pledged to develop with Korea a revolutionary nuclear reactor that will leave far less radioactive waste than existing ones.

Gates, who retired from managing Microsoft in 2008, invested US$35 million to establish a nuclear-power venture company called TerraPower in 2010.

more: http://english.chosun.com/site/data/...082001106.html

[hakz2007]

Oil products become South Korea's largest export earner in 2012 on 9% rise

Petroleum products were South Korea's largest export earner in 2012, accounting for 10.3% of total exports, driven by an upgrade in refining facilities and higher global oil prices, the energy ministry said Wednesday.

South Korea exported $56.2 billion worth of oil products in 2012, up 8.9% from $51.6 billion in 2011, according to the Ministry of Knowledge Economy, which is responsible for energy, industry and commerce.

Read more

[hakz2007]

10,000 oil rig construction jobs lost as North Sea contracts go to Korea

Up to 10,000 engineering jobs could have been created if the government had supported British companies bidding to win contracts to build North Sea oil rigs for energy giants, it has been claimed.

The contracts went to South Korea, with the result that the industry has shed tens of thousands of jobs, something that has major implications for the UK's ability to build the next generation of carbon-friendly energy infrastructure, such as windfarms.

Read more

[jlee]

http://online.wsj.com/article/SB1000...108657668.html

SEOUL—South Korea is no longer just a country of tiny chips, mid-sized cars and big ships.

Its biggest export last year was neither electronic nor metallic—it was fuel.

Exports of petroleum products were valued at $56.2 billion in 2012, preliminary government data shows, boosted by higher energy prices and surging output from South Korea's oil refineries, which include three of the world's 10 largest.

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South Korea is rarely considered in discussions of world energy powers. It has virtually no fossil fuels of its own and the government in recent years has resorted to staging blackout drills because of difficulties meeting its own need for power during extremely hot and cold weather.

But over the last decade, South Korea has grown to become the world's sixth-largest refiner of petroleum into gasoline, diesel, jet fuel and other products. Major South Korean energy producers built giant, state-of-the-art refineries that meet strict product standards from Europe and California and have taken advantage of proximity to China to meet its growing energy demands.

Petroleum products accounted for 10% of South Korea's $548 billion in 2012 exports, and were followed by semiconductors at $50.4 billion and general machinery, such as industrial tools, at $48 billion, or about 9% each of the total.