GS Electric and Power Services, a power subsidiary under GS Group, said Tuesday that it will build a “green” high-efficiency liquefied natural gas combined cycle power plant in Dangjin, South Chungcheong Province.

The firm spent 460 billion won ($420 million) for the plant which will be completed by August 2013. GS EPS currently operates two other power facilities there.

The firm held a groundbreaking ceremony at the site on Tuesday. 

The event was attended by GS Group chairman Hur Chang-soo, GS Caltex chairman Huh Dong-soo, GS Holdings Corp. vice chairman Seo Gyeong-seok and GS EPS CEO Lee Wan-kyoung.

“Through the construction of the plant, GS EPS aims to become a leading power provider in Korea. The facility will be an eco-friendly one which minimizes emission amid global climate change,” Lee said at the event.

The new 400 megawatt-facility boasts eco-friendliness and high-efficiency as it consumes less fuel than existing LNG combined cycle power plants and thus emits less carbon, GS EPS officials said.

This is possible thanks to Siemens’ H-Class gas turbine, adopted for the first time in the country. The turbine possesses lower heating value of 60 percent, compared to 55-57 percent for others of its kind, according to the firm.

In addition to its domestic operation, GS EPS has been stepping up efforts to expand its offshore business.

GS EPS has launched the construction of a biomass power plant in Shandong, China earlier this month and is planning to begin a clean development mechanism business, a kind of carbon trading, there.

The firm said it is to inject 200 billion won in the new plant as well as overseas power generation and renewable energy projects within this year. The firm’s total investment by 2014 will reach 800 billion won.

GS Group, meanwhile, has been executing its pledge to spend 2.2 trillion won, up 10 percent from 2010, on its businesses this year as planned, officials said.

The budget allocation for energy accounted for 1.4 trillion won, while it was 400 billion each for the retail and construction sectors.

By Koh Young-aah (youngaah@heraldcorp.com)