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An overview of the Seosan resource-recirculation biogasification facility completed by Kumho E&C in 2020. / Courtesy of Kumho E&C

Kumho E&C is fostering the biogas market as a new business engine. This move stems from the assessment that its technological capabilities to build integrated biogasification facilities by linking sewage and excrement pre-treatment plants, combined with its track record in winning overseas sewage treatment projects, will create strong synergies in diversifying its environmental business portfolio. Biogas refers to fuel gas produced from organic waste using microorganisms.

According to industry sources on July 6, Kumho E&C recently extended the validity period of its New Technology Certification No. 441, titled "Organic Waste Biogasification Technology using a Horizontal Anaerobic Digester Combined with an Up-Down Agitation Device and Biological Desulfurization Equipment (KH-ABC)," through July 2029. This means the company can continue applying this technology to projects commissioned by public institutions. KH-ABC is a technology that utilizes organic waste such as food waste, sewage sludge, and livestock manure to produce biogas while lowering the concentration of hydrogen sulfide contained within it.

Generally, obtaining a New Technology Certification provides advantages in securing public sales channels, such as mandatory purchases by public organizations and eligibility for private contracts for innovative products via the Public Procurement Service. In some cases, it also offers extra points in government research and development (R&D) projects, as well as financial and business support.

Kumho E&C has previously developed membrane-filtration seawater desalination facilities and has been exploring entry into new markets such as biogas, wind power, and nuclear power generation based on its experience in constructing cogeneration and thermal power plants. In the environmental sector, the company has secured water treatment technologies including sewage and wastewater treatment methods, and has commercialized its biogas technology at the Seosan biogasification facility and the Jeju municipal livestock manure public treatment facility using the KH-ABC technology.

Currently, the company is executing the Jeju Public Sewage Treatment Plant Modernization Project, which it won from the Korea Environment Corporation. For the Seosan biogasification facility, Kumho E&C estimates a carbon dioxide reduction effect of approximately 9,800 tons per year through biogasification, alongside annual operating cost savings of about 700 million won compared to treating waste individually.

The biogas business pursued by Kumho E&C is not limited to isolated projects. The "Gwachen Public Sewage Treatment Plant Modernization Project," which it recently bagged from the Korea Environment Corporation alongside Kolon Global and others, is cited as another example of its expanding presence in this sector. This project encompasses sewage treatment facilities, excrement pre-treatment plants, and integrated biogasification facilities.

Market growth potential is another reason Kumho E&C is turning its attention to the biogas sector. Market research firm Grand View Research projects that the global biogas market size will expand from approximately 93 trillion won in 2023 to about 125 trillion won by 2030.

"Overseas, we are participating in Official Development Assistance (ODA) projects focused on roads, water supply, and sewage systems, mainly in Vietnam, Laos, and Cambodia, and are reviewing additional projects," a Kumho E&C official stated. "We will combine eco-friendly construction technologies with smart construction solutions and diversify our business portfolio to expand our footprint in the global market."

                                                                                                                Lee Soo-il