On the afternoon of the 7th in Jangam-ri, Jangyeon-myeon, Goesan, North Chungcheong, at the Dambau Energy Supply Center. The indoor space was sweltering from the heat coming off the boilers, but the power generation equipment installed on one side was at a standstill.
It is a combined heat and power generator, the core facility of the Forest Energy Self-reliant Village project promoted by the Korea Forest Service. To run the generator, first-grade wood chips with a moisture content of 15% or less are required, but fuel procurement has not been smooth, so it is currently not operating.
◇Spent 6.3 billion won, but… the generation equipment is "stopped"
The Forest Energy Self-reliant Village project uses unused forest biomass in mountain villages to produce and supply heating and electricity on their own.
The Dambau Energy Supply Center is cited as a leading example. The total project cost is 6.3 billion won. It was funded by 2.2 billion won in national funds, 2.6 billion won in local funds, and 1.5 billion won from the local extinction response fund. The facility is equipped with two wood chip boilers and a combined heat and power system.
The facility currently provides heating and hot water to 60 households across Jangam-ri through a central supply system. Residents pay according to usage, but they say costs are lower than with individual heating. The energy supply center estimated an annual energy expense reduction of about 1 million won per household. The total savings for 60 households is about 60 million won per year.
A simple calculation suggests it would take more than 100 years to recoup the investment. But according to Korea Forest Service data, the service life of wood chip boilers is only 20 years and that of combined heat and power equipment is 15 years. Considering the lifespan of the core equipment, critics say the economics are weak.
In particular, the electricity sales business the Korea Forest Service had expected is effectively at a standstill. The agency had said that by using unused biomass, heating and electricity bills could be reduced and surplus power could be sold to generate revenue.
It also expected to reduce carbon emissions compared with individual heating through dust collection equipment and a carbon capture system, and to create jobs in mountain villages.
Reality, however, is seen as far from those expectations. Goesan County injected additional funds and even built a Forest Resource Circulation Center nearby, saying it would create a supply base for generator wood chips, but it failed to install the core equipment to produce and dry wood chips, citing budget shortfalls, among other reasons.
◇From Bonghwa and Hwacheon to Yeongdeok… controversy repeats
Similar problems have recurred in prior projects. In Bonghwa, North Gyeongsang, 5.3 billion won was spent to promote the nation's first pilot project for a Forest Carbon Circulation Village, but a combination of fuel cost burdens and design issues brought it to a halt in less than a year of operation.
In Hwacheon, Gangwon, the wood-pellet-based district heating project likewise faced ongoing controversy over low efficiency, and during a National Assembly audit it was even labeled a "white elephant."
Even so, the Korea Forest Service is sticking to its expansion policy. Last year, it selected Yeongdeok, North Gyeongsang, as a new project site. A total of 6.5 billion won in public funds, including 2.2 billion won in national funds, is slated for the Yeongdeok project.
At the time Vice Administrator Park Eun-sik of the Korea Forest Service (now the Korea Forest Service commissioner) visited the Dambau Energy Supply Center in Goesan on Jan. 1 and said, "The Forest Energy Self-reliant Village is a carbon-neutral project to improve residents' convenience, such as heating and hot water, by using wood chips," adding, "We will spare no policy support so the project can become even more active."
◇"Waste of public funds" vs. "energy welfare"… divided assessments
Experts are divided. Some say low economic viability makes it a waste of public funds, while others argue it is needed to achieve energy self-reliance in mountain villages and carbon neutrality.
Seo Myeong-won, a professor in the Department of Environmental Engineering at the University of Seoul, said, "The intent to use unused domestic biomass is meaningful, but when factoring in raw material collection and transportation expense, it is hard to expect economic feasibility," adding, "The structure is such that producing wood chips domestically costs more than importing from overseas."
The Korea Forest Service, on the other hand, says it is meaningful in terms of reducing dependence on fossil fuels and enhancing energy welfare in mountain villages. An official at the Korea Forest Service explained, "Energy supply using forest biomass is a public project that cannot be assessed by simple revenue alone."