Government Selects Gas Combined-Cycle Power Plant Project as First U.S. Investment

The government has selected a gas combined-cycle power plant construction project as its inaugural investment project in the United States.

Following the tariff agreement reached between South Korea and the U.S. last year, the USD 200 billion U.S. investment project has entered the substantive implementation phase.

According to the government and industry sources on today (the 28th), the Ministry of Trade, Industry and Energy has designated the gas combined-cycle power plant construction project as the first U.S. investment project and is currently in final coordination with the U.S. Department of Commerce.

Taking advantage of the summit last year, South Korea and the U.S. agreed on a joint factsheet that includes a U.S. investment project where South Korea will invest a total of USD 200 billion with an annual cap of USD 20 billion.

This project is expected to mark the first actual implementation case of the U.S. investment plan agreed upon at the time.

If bilateral consultations proceed smoothly, the project will undergo deliberation by the Korea-U.S. Strategic Investment Steering Committee as early as next month, after which the intention to pursue the project will be conveyed to the Committee on Foreign Investment in the United States.

Once U.S. President Donald Trump grants final approval, it will be finalized as the first U.S. investment project.

The background behind the government selecting gas combined-cycle power generation as its first investment target is attributed to the surging demand for electricity in the U.S. and securing commercial rationality through it.

Recently in the U.S., the expansion of artificial intelligence (AI) data center construction has emerged as an urgent task for building power infrastructure.

Although plans to build a nuclear power plant were initially reviewed alongside, it was reported that gas combined-cycle power generation was chosen because its construction period is relatively shorter than that of nuclear power, allowing for a timely response to the rapidly growing electricity demand within the U.S.

A gas combined-cycle power plant burns liquefied natural gas to drive a gas turbine first, and then uses the high-temperature exhaust gas to generate steam to operate a steam turbine secondly. This method yields higher efficiency and lower particulate matter emissions compared to standard thermal power plants.

If a business structure is secured to supply electricity produced from the power plant to AI data centers and other facilities in the U.S. on a long-term basis, the U.S. investment fund can expect relatively stable investment returns.

In addition, rather than stopping at mere investment, the government is also formulating support measures to enter the U.S. market in the form of a Team Korea, with extensive participation from domestic companies.

However, the government drew the line regarding specific project details.

An official from the Ministry of Trade, Industry and Energy stated, "Regarding the U.S. investment project, the government is in close consultation with the U.S. side, but specific details and the announcement timing of the first project have not yet been decided."

(Photo provided by Ministry of Trade, Industry and Energy, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.