Introduction of Korea District Heating Corp.

Mr. President, IDEA members, Representatives from the district energy sector, ladies and gentlemen;

I am very pleased to have this opportunity to introduce Korea District Heating Corporation to you.

On behalf of KDHC, I wish to express our gratitude to the President of IDEA, Mr. Robert Thornton for this opportunity.

Korea District Heating Corporation has been serving customers for 18 years now, since it was established in 1985 as government corporation, for the purpose of promoting energy conservation and improving living standards, through the efficient use of district energy.

Despite of its relatively short history, we have made remarkable progress.
Heat production capacity is totally 3,465 MW/h (Mega Watt per hour) in 11 plants, including 1,484 MW/h from CHPs operated by Korea Electric Power Corporation and 85 MW/h from the Incinerators owned by several municipal governments.

And, the length of heat supply pipe is totally about 1,330 miles.
Using these plants, we supply district heat to almost 698,000 households and 1,500 buildings, a total heating area of 727 million square feet.

Thus, the district heating system in our country has now grown to play a key role in the national energy industry.
KDHC is a leader in the district heating business and is faithful to its responsibilities as a public welfare enterprise.

In 2002, the energy saving effect of KDHC’s district energy system was a 53% reduction in fuel consumption, approximately 663,000 tons, compared with conventional heating systems, and resulted in avoided costs of about 342 million US dollars.

Additionally environmental benefits included a 23% reduction of emission gas compared with conventional heating systems, about 1 million tons of Sox (Sulfur Oxide), Nox (Nitrogen Oxide) and Dust, and a 49% reduction of CO2(Carbon Dioxide) which we all know causes a green house effect.

Encouraged by the enormous accomplishment of district heating, the Korean government has established a plan to expand district heating to 1,514,000 households by the year 2005.

And, in order to enhance national energy efficiency, we are making an effort to promote the use of environmentally-friendly renewable energy.

Capturing and using heat energy produced by waste incinerators is one such initiative.

In 2002, we bought 540,000 MW of heat energy from several waste incinerators, and supplied this to our consumers through our networks.

A pilot Landfill Gas Utilization Project has also been undertaken by our corporation. This project makes use of landfill gas, which was merely burned out until now, as a district heating fuel.
KDHC has been using landfill gas from the Sang-Am Sanitary Landfill Area located in outlying areas of Seoul as fuel to supply both heating and cooling to the main stadium of the 2002 FIFA World Cup, as well as the nearby housing area.

We are also promoting a big Community Energy Supply System, that is CES project, with Digital Media City located in Sang-Am same area, as the Special Development Zone administrated by city of Seoul.

Recently, KDHC has been preparing for a whole new phase in our operation, promoting full-scale power generation through the installation of medium to large CHP, scale of 500 MW at new integrated energy supply business districts.

I am looking forwards to the opportunity to exchange lots of information about the district energy business with other members of IDEA attending the conference.

Especially, I am so much interested in the more advanced technical level in environmentally- friendly facilities, Heat Exchanger, Heat Accumulator, Low Nitrogen Oxide Burner and Electrostatic precipitator, etc.
In closing, I would like to stress once again that I hope this conference will provide good chances for business cooperation and prove to be productive and worthwhile for all members.

If you have any questions about KDHC, or would be interested in an exchanges of information, I hope you will take time to speak with me any time.

Thank you,

President of KDHC,

Chung, Dong-Yun