Daesan Phase II: Inside CGN's First Independently Managed Gas-Fired Power Plant in South Korea

On July 24, 2026, CGN Energy International, a subsidiary of China General Nuclear Power Corporation (CGN), began commercial operations at the Daesan Phase II gas-fired power plant in Seosan, South Chungcheong Province, South Korea . The facility, located in the Daesan industrial complex, marks a significant milestone for the Chinese state-owned energy giant as its first large-scale gas-fired plant developed and operated under an independent management model .

Plant specifications and capacity

Daesan Phase II is a 557 MW LNG combined-cycle power plant . With an expected annual generation capacity of up to 3.9 billion kWh (3.9 TWh), the facility is designed to provide a stable, dispatchable power source to South Korea's grid . The plant's gas turbine is equipped to undergo modifications for burning up to a 30% hydrogen blend once the green hydrogen supply chain matures, positioning it for lower-carbon power generation in the future .

Strategic significance

Daesan Phase II represents CGN's first large-scale gas-fired power project developed and operated under an independent management model overseen by its South Korean subsidiary, CGN Korea Holdings . As a self-developed greenfield project, it involved over 100 South Korean companies in construction and achieved roughly 15% higher construction efficiency compared to benchmarks . The project is included in South Korea's 10th Basic Plan for Power Supply and Demand (2022–2036) .

Broader context: CGN's growing Korean footprint

With Daesan Phase II now operational, CGN Energy International operates five power facilities in South Korea with a combined installed capacity exceeding 2.2 GW . The expansion comes at a critical time as South Korea faces surging electricity demand driven in part by an AI boom that has intensified power supply strain, making new dispatchable gas-fired capacity strategically important for grid reliability .

Hydrogen-ready future

The plant's hydrogen-ready capability—allowing it to burn a mixture containing up to 30% hydrogen—aligns with broader trends in South Korea and beyond. Several other facilities in the Daesan area have already demonstrated higher hydrogen co-firing ratios, including a Hanwha Impact unit that operated on 59.5% hydrogen in 2023 , and a Kawasaki commercial engine launched in 2025 for 30% hydrogen blends . This positions Daesan Phase II to progressively decarbonize as the hydrogen supply chain develops, without requiring major retrofits to the core turbine equipment .