- Acquiring Poseung Green Power for 95 billion KRW with the aim of entering the eco-friendly biomass power generation industry  
- Promoting the biomass power generation industry as a new profit source due to its potential as a consistent and stable source of growth
- Development and investment in new businesses including nickel, eco-friendliness, and the distribution center to diversify the corporate business

LX International (CEO Yoon Chun Sung) enters the eco-friendliness biomass power generation industry by acquiring the local biomass power plant. Commencing with the biomass power plant acquisition, the company aims to expand its businesses to the value chain in general including the fuel and promote the eco-friendly biomass power generation business as a new profit source due to its potential growth in the future.

■ Acquiring a 63.3% share of the Poseung Green Power for 95 billion KRW to enter the eco-friendly biomass power generation industry

On April 19, LX International held a board meeting and passed the agenda regarding the acquisition of a 63.3% share of Poseung Green Power that is originally owned by DL Energy for 95 billion KRW to enter the biomass power generation industry. Poseung Green Power is a subsidiary company of DL Energy, and it currently operates the Poseung biomass power plant.

Established by DL Energy in 2014, Poseung biomass power plant is a new renewable energy power plant situated in Poseung industrial complex in Pyeongtaek, Gyeonggi-do. It generates a max. 43 MWh electricity per hour by using 250,000 tons of wood biomass a year including bio-SRF and unused woodchip as fuels. Such an amount of electricity generation can supply electricity to 100 thousand households in Seoul per year, and this power plant also operates the group energy business to supply steam to companies in Poseung industrial complex.

■ Promoting the biomass power generation industry as a new profit source due to its stable growth in the future

Starting its commercial operation in March 2018, Poseung biomass power plant raised sales of 42.8 billion KRW in the same year. Last year, through the sales of electricity, steam, and REC (Renewable Energy Certificates), its total revenue for the year was approximately 60 billion KRW. This has been the 5th year of commercial production, and the performance of this power plant remains perfectly stable more than ever.

Especially, the Poseung biomass power plant secured a stable client by concluding a long-term supply contract for the REC. Besides, the long-term contract with Bio-SRF supplier has secured a stabilized fuel supply.

According to the investigations carried out by institutions associated with energy, the biomass power generation capacity in Korea will increase from 2.2GW in 2020 to 3.3GW in 2034, while the biomass fuel usage will increase from 5 billion tons to more than 8 million tons per year.

LX International states that biomass has advantages over solar or wind energy due to the unrestricted location requirements and relatively greater generation efficiency. Also, it further argued that considering the consistent and stable development in the future, it will promote the domestic and international eco-friendly biomass power generation business as a stable profit source of the company by reviewing further  investment in greater amount of assets and expanding to the relevant fields such as fuels.

Last month, LX International acquired Korea Glass Industry which is widely known as HanGlas to prepare a bridgehead to enter the material industry.

This year, LX International plans to mainly focus on △ securing nickel assets △ eco-friendly fuels including PBAT △ eco-friendly business such as the biomass power generation, resources circulation, carbon reduction, etc. △ development and operation of a distribution center △ development and promotion of new business models that are promising in the fourth industrial revolution era.

In the meantime, LX International invested in the Hasang hydroelectric power generation plant in Indonesia to manage new renewable energy development overseas. The entire business procedures from electricity purchase, construction and the operation of the power plant was led by LX International, and the generated electricity has been stably supplied to the national power company in Indonesia in accordance with the 30-years purchase agreement.

Moreover, the Hasang hydroelectric power generation plant was recognized by the UN in December 2020 for its ability to substitute the existing fossil fuel through an eco-friendly power generation, and it has been officially registered as a greenhouse gas reduction business. As a result, it has been issued with 200 thousand tons of carbon credit per year.

[Terms]

* Biomass power generation: Refers to the electric generation by using the energies obtained by biomass, which is a generic term for biological organisms including plants, animals, and microorganisms, etc.

*Bio-SRF: Solid fuel made out of biomass including waste wood as its main ingredient.

*Unused woodchips: Material for the  power generation made out of unused forest biomass including the roots and branches of trees that is processed in the shape of a chip for easier combustion.

* REC: Refers to a certificate to prove the energy generation was carried out by new renewable energy development. Entrepreneurs of new renewable energy may sell the REC to large power generation companies, and the companies are responsible for generating a certain amount of electricity by using new renewable energy according to the ‘compulsory provision of the new renewable energy policy.’