S-Oil announced on the 23rd that it will invest 263 billion won in the construction of a new self-generating power facility utilizing natural gas.

On the same day, S-Oil signed a memorandum of understanding (MOU) with Ulsan City in the presence of President Park Bong-soo and Ulsan Mayor Kim Du-gyeom, promising continuous cooperation.

A view of S-Oil's Ulsan Onsan plant. / Courtesy of S-Oil

The self-generating power facility being constructed by S-Oil at its Onsan plant consists of two gas turbine generators (GTG) that generate electricity using natural gas and two waste heat recovery boilers that recover waste heat from the generation process. It is expected to be completed by the end of 2026.

S-Oil plans to consume all the electricity (121 MW capacity) produced at this facility for its own use, expecting to reduce expenses by replacing electricity supplied from outside. The generation facilities are composed of two units to enhance operational stability and can operate flexibly depending on the factory's electricity demand.

Additionally, the company plans to recover high-temperature exhaust gases generated during the power generation process using waste heat recovery boilers instead of releasing them directly into the atmosphere, producing high-pressure steam for use in plant operations. Consequently, it aims to reduce carbon dioxide emissions from the factory by 160,000 tons annually by decreasing the operation of existing steam production boilers.

S-Oil also plans to install two GTGs (150 MW capacity) at its petrochemical facility, the 'Shahin Project,' which is currently under construction. Once the construction of a total of four GTGs is completed, the self-generating power ratio of S-Oil's Onsan plant is expected to rise to 42% from the current level of 10%.

An S-Oil official noted, "The biggest feature of this investment in the self-generating power facility is that it will enhance energy efficiency at the Onsan plant while also reducing carbon emissions. We aim to contribute to securing the stability of the national power supply and the Ulsan economy."