KOMIPW transition framework maps coal-to-hydrogen pathway

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Korea Midland Power (KOMIPW), a wholly owned KEPCO subsidiary, came to market on 21 July 2026 with a three-year USD Climate Transition Bond. It is the second Korean utility to use the format, following Korea East-West Power’s inaugural transaction on 6 July 2026.

KOMIPW’s July 2026 Green and Climate Transition Finance Framework identifies projects linked to the retirement of Boryeong coal units 5 and 6, their replacement with LNG combined-cycle generation and a longer-term pathway towards hydrogen conversion. This is a project-based transition case, rather than a general framework for financing gas generation.

The timing creates an additional consideration. KOMIPW has a USD300 million conventional bond maturing in August 2026, shortly after the new transaction. Although the issuance occurs against a refinancing backdrop, Climate Transition Bond proceeds must be allocated to eligible green and transition projects rather than used for general refinancing.