The government's decision to include liquefied natural gas (LNG) combined-cycle generation—alongside renewable energy and nuclear power—in the semiconductor cluster in the Honam region reflects an urgency to push the project forward at extreme speed. In an era when semiconductor production capacity translates directly into national competitiveness, it means mobilizing every fast and stable method available, from power to water.
Kim Sung-hwan, Minister of Climate, Energy and Environment, recently emphasized in a radio interview, "There are demands to resolve the supply of enormous amounts of power within two to five years, and this will be the very point at which the nation's capabilities are tested."
According to the government and the energy industry on the 8th, an LNG combined-cycle plant with a capacity of 1 to 2 gigawatts (GW) is set to be built near the semiconductor cluster in the southwestern region. This is an "on-site" approach, in which a power plant is built near a large power-demand center and dedicated to supplying electricity to it.
The Climate Ministry, which had been negative about fossil-fuel-based power generation, also shares a sense of crisis that it would be difficult to supply enough power for the semiconductor cluster with nuclear and renewable energy alone.
To begin with, residents near the Hanbit Nuclear Power Site Division in Yeonggwang County, South Jeolla Province, are opposed to expanding nuclear power. Because of such issues, Yeonggwang County was unable to apply even for the new nuclear power site competition held earlier this year.
The long time required to build a nuclear power plant is another concern. Korea Hydro & Nuclear Power estimates it usually takes 13 years and 11 months to build a new reactor. Even if the roughly five-year site-securing period is shortened by using an existing nuclear site, building a new reactor would still take more than eight years. Even if construction were to begin immediately, power generation would not be possible until 2034.
Solar power, which generates electricity only when the sun is up, cannot reliably supply power to industrial facilities that require electricity around the clock. Even when linked with energy storage systems (ESS), the time during which electricity can be supplied is limited to about 18 hours a day at most. There is an option to link it with offshore wind power, which generates relatively more electricity at night, but the facilities are not yet sufficient.
Nor is it easy to bring in power from other regions. Conflicts between residents and power authorities are already arising in various parts of the country over sending the southwestern region's power to the greater Seoul area. Yoo Seung-hoon, a professor in the Department of Energy Convergence at Seoul National University of Science and Technology, pointed out, "Not to mention Gyeongsang Province, even if we use surplus power from Yeosu and Suncheon, we would have to build transmission lines of considerable length," adding, "It is a structure in which construction inevitably drags on due to opposition from local residents."
Given these circumstances, companies have no choice but to turn to methods they have used stably in the past. LNG combined-cycle generation can supply electricity stably around the clock, and the latest facilities can be converted to hydrogen co-firing or full firing over the medium to long term, contributing to carbon neutrality. Above all, once permitting issues are resolved, it can reach the commercial operation stage in three to five years, making it optimal for supporting the government's push to fast-track semiconductor fabs.
The fact that using LNG combined-cycle facilities in a cogeneration format allows the heat energy left over from generating electricity to be provided to industrial facilities in the form of steam is also attractive to companies. Running large-scale industrial facilities, including semiconductors, requires not only electricity and water but also a considerable amount of heat energy. For the power plant, too, this allows every bit of leftover heat energy to be used, maximizing facility efficiency.
Professor Yoo explained, "In fact, SK hynix's Cheongju and Icheon plants built their own cogeneration plant facilities and received steam as well, boosting competitiveness for their semiconductor facilities," adding, "Even apart from semiconductors, building generation facilities at large-scale industrial sites to receive electricity and steam is common overseas."
However, the relatively high cost of LNG plants is expected to be a burden. According to Korea Electric Power Corporation, the purchase price of LNG power generation last year was 158.4 won per kilowatt-hour (kWh), the highest among major power sources. A senior government official explained, "Right now, semiconductor companies are demanding speed above all, to the point of saying they want to buy time with money."
