The government will provide up to 1 billion won to companies that convert shared-use facilities in industrial complexes into eco-friendly equipment. The Ministry of Trade, Industry and Energy said on Monday it will recruit companies for the Industrial Complex Eco-friendly Equipment Infrastructure Support programme until March 31 to promote a green transition at industrial complexes.

The programme totals 2.8 billion won and will subsidise up to 60 percent of project costs with state funds for selected companies. It will provide up to 1 billion won when there are many beneficiary companies using the shared facilities and the carbon-reduction effect is large. The maximum support amount last year was 400 million won.

Industrial complexes are advantageous for multiple companies to share facilities because many firms are clustered in a concentrated space. Replacing aging equipment operated separately by individual companies with modern equipment that can be used jointly can save investment costs and reduce carbon emissions. The ministry has supported the building of shared-use facilities in industrial complexes since 2018, including waste heat recovery systems and infrastructure to recover and refine used cutting oil.

From this year, eligibility has been expanded beyond multiple demand companies to include corporate councils or cooperatives within industrial complexes. If cooperatives and corporate councils that have operated shared-use infrastructure in industrial complexes introduce or replace equipment such as air compressors, waste heat recovery facilities and high-efficiency boilers, more companies in the complexes can reduce the burden of investing in and operating equipment. Energy cost savings and carbon-reduction effects are also expected.

Eligible applicants are small and mid-sized companies and management organisations seeking to build facilities or services for joint use by multiple demand companies with factories registered in industrial complexes. Management organisations refer to corporate councils and cooperatives that manage and operate shared-use facilities within industrial complexes. Affiliates within the implementing organisation are excluded from the count of demand companies.

The scope of support covers the building of equipment to reduce greenhouse gases and energy that can be shared among companies. It includes equipment that recovers process waste heat and unused energy for use as an energy source; facilities that cut the use of auxiliary fuels through process improvements and replace fossil fuels by converting to fuels such as biomass and waste; optimal operation control systems; and data monitoring and measurement systems. Support will also be provided for calculating greenhouse gas reduction performance and linking it to formal schemes.

Items eligible for support include equipment purchase costs, installation and commissioning costs, analysis costs for verifying performance and greenhouse gas reduction results, and outsourced settlement costs for accounting. Self-financing can be made up of local government funds and private contributions, and private contributions can be borne jointly or individually within the implementing organisation.