Polaris Shipping Co. Ltd, Korea Midland Power Co. Ltd, Hyundai Heavy Industries Co. Ltd, and Siemens Energy Solutions Ltd have signed a Memorandum of Understanding (MOU) to develop MOBILE POWERSHIP - an integration of shipbuilding and power generating technology in which a highly efficient power generating facility will be installed onto a FSRU (floating storage regasification unit) for the first time.
It is expected that MOBILE POWERSHIP will commence its operation in December 2017 with total investment of U$ 940 million. When compared to building a power plant on land, the model will substantially reduce civil complaints as it will not require a large scale land. In addition, the overall construction period will be shortened. In terms of power transmission, MOBILE POWERSHIP will utilise existing cables so that sections subject to new installation will be minimised, which leads to significant cost saving. Once the business model is successfully launched in South Korea, it is anticipated to move overseas to selectively target combined cycle power producing market where high yields can be generated.
“MOBILE POWERSHIP is the world’s first invention to integrate a combined cycle power generating facility and liquefied gas storage in which a gas turbine and a regasification unit are directly linked to achieve curtailment of fuel cost. Hence, we are of a view that it can be a smart solution to surging demand for electricity in and out of Korea and a successful business model for the Creative Economy.” commented a Spokesperson from Korea Midland Power Co., Ltd.
Integrating LNG FSRU
“This Powership integrates the LNG FSRU, the model first designed and built by Hyundai, with the top-of-the-line combined cycle unit in the capacity of 880 MW, which will give birth to an innovative naval architecture through combination of shipbuilding and plant engineering. We plan to target overseas newbuilding market upon successful launch of the project.” commented Hyundai Heavy Industries.
Dr. Rochus Bergmann, CEO of Siemens, said: “Siemens is delighted to participate in the Powership project based on an innovative business model to share our technical expertise and competitiveness which we have built in the global power producing market. Furthermore, synergy between Siemens’ engineering knowhow and Hyundai Heavy Industries’ world class shipbuilding technology will create a state-of-the-art offshore combined cycle power plant.”
Four concerned parties including Korea Midland Power will launch a Task Force Team after signing the MOU to closely examine technical issues which will be reflected in the engineering of Powership. It is said that once performance of the Powership is ascertained through the pilot project in Korea, it will be exported to Philippines, Indonesia, Brazil, and other countries where power shortage has become a critical issue. In addition, it is anticipated that the project will firmly position itself as a business model well-suited for South Korean policies under the ‘creative economy’ by generating approximately US$ 2 billion per project.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10122013/mou_signed_for_mobile_powership_555/