Korea Kumho Petrochemical Co., the chemical subsidiary of Kumho Asiana Group, has decided to promote the solar power generation business as its future growth engine.

KKPC announced on Thursday that it would enter the solar energy market through its newly acquired subsidiary, Korea Energy Power Plant, a special purpose company established last year.

The chemical company incorporated the energy corporation as its sixth subsidiary late last month by acquiring 80.77 percent of its shares.

KEPP recently installed solar energy generation facilities in factories and warehouses, and on rooftops at Korea Aerospace Industries located in Sacheon, South Gyeongsang Province. The sites, into which 14.5 billion won ($12.6 million) has been invested, will operate up to 2027.

Starting business on Friday, the power plant will generate 5.32 megawatts per hour and 6,602 megawatt-hours per year, enough to supply some 1,500 households, according to officials.

The energy corporation also plans to boost its profitability by selling its renewable energy certificates to other local power generation companies.

Under the current law, electric power generators are obligated to meet a renewable energy quota, which is 2 percent of the total energy produced per year, or else purchase REC from other companies.

“We thus expect to achieve some 2.4 billion won in yearly sales and to reduce some 2,700 tons of carbon dioxide per year,” said an official.

The company also predicted 28.8 billion won in accumulated sales over the next 12 years, waving off the skepticism that the solar power business was still too immature to yield visible profits in the coming years.

KKPC first joined the energy business sector back in 1997 by establishing a cogeneration facility, and currently owns two power plants in Yeosu, South Jeolla Province.

In March last year, the company revised its articles of association and added the manufacturing, processing and sales of solar power energy to its business purposes.

“Starting with solar power generation, we will move to further reinforce the entire renewable energy business, such as the solar heat and biomass fuel sectors,” said the official.

By Bae Hyun-jung (tellme@heraldcorp.com)