S. Korea to invest 3 tln won on clean energy development

(ATTN: UPDATES with more details throughout)

By Lee Joon-seung

SEOUL, Sept. 11 (Yonhap) -- The South Korean government and private companies
plan to invest a combined 3 trillion won (US$2.7 billion) to develop clean energy
resources over the next five years, officials said Thursday.

The blueprint, outlined at a "green energy development strategy"
meeting at the presidential office, calls for funds to be channeled into key
technology and production support projects that could increase the country's use
of clean, reusable energy.

The Ministry of Knowledge Economy, which is responsible for the country's energy
policies, said clean power production is gaining importance as South Korea comes
under pressure to reduce various greenhouse gases and cope with the high price of
fossil fuels like oil, gas and coal.

In the plan that will run through 2012, support will be given to solar and wind
energy, light emitting diodes, and technology that merges information technology
with power generation, which is currently in use, but could be made more
efficient.

Money will also be used to improve hydrogen fuel cells, gas-to-liquid and
coal-to-liquid engineering, integrated gasification combined cycle (IGCC) power
plants, carbon capture and storage, and other advanced energy storage
technologies.

The ministry said that of the total to be invested, the government will
contribute 1.7 trillion won, with the private sector coming up with the rest. A
detailed investment plan is to be announced by March.

It added that in order to spur the domestic green energy market, it will rewrite
the current voluntary "renewable portfolio agreement" to compel power
companies to produce a pre-set percentage of their total outputs with clean
energy generation.

Such changes could make power companies generate at least 3 percent of their
total output through clean energy by 2012, with the target being raised to 10
percent by 2020.

President Lee Myung-bak, who chaired the meeting, said green energy production is
not a matter of choice, but that it must be pursued if the country is to maintain
sustainable growth.

He then said that regardless of whether crude prices decrease, it is imperative
to reduce the country's dependence on imported oil.

"We have been late entering the field, but if we concentrate our efforts,
it's not too late to catch up with the leaders," the chief executive said.
He added that the future of South Korea rests with its ability to develop and
make use of clean, reusable energy.

Government officials, meanwhile, said that if the green energy plan is
successful, the size of the local clean energy market could balloon to $17
billion in 2012 from just $1.8 billion last year.

Exports may receive a boost, with locally made clean energy components winning a
bigger market share.

In 2007, local products accounted for 1.4 percent of the global market, but this
could jump to 5 percent in 2012 and 13 percent in 2030.

In addition to announcing investment and development targets at the meeting,
companies reported that they will make significant contributions to help build
the country's clean energy infrastructure.

DC Chemical Co. said it plans to invest 2.2 trillion won by 2010 into polysilicon
manufacturing facilities so it can become the world's leading producer of the
solar panel material.

Doosan Heavy Industries and Construction Co. said it will allocate 670 billion in
the coming years to build up wind power generation and IGCC technologies.