Low Installation Rate of Gas Vapor Recovery Facilities at Gas Stations

Suwon City plans to inject approximately 100 million won in subsidies to encourage early installation as the installation rate of gas vapor recovery facilities remains low at around 8%.

Gas vapor recovery facilities are recovery equipment attached to fuel pumps that capture oil vapors emitted during refueling operations and direct them to storage tanks.

The city implemented a phased mandatory installation of gas vapor recovery facilities at gas stations beginning this year, following the Ministry of Environment's initiative to reduce volatile organic compounds (VOCs), a major cause of ozone formation. Volatile organic compounds increase ozone concentration, causing photochemical smog, and directly and indirectly affect human health through symptoms such as nausea, dizziness, and cancer.

Accordingly, the city completed installation at 10 gas stations (of the 12 target facilities with annual fuel sales of 3,000㎥ or more) out of 139 target installation sites by the end of June, with completion scheduled for 2012. However, as of the end of this year, 16 gas stations with annual sales between 2,000㎥ and 3,000㎥ have yet to begin installation, bringing the overall installation rate to just over 8%.

To address this, the city will invest 103.2 million won (50% national funding, 25% provincial and municipal funding each) to support gas stations seeking early installation with subsidies of up to 50% (approximately 3.6 million won per business).

For facilities with annual sales of 1,000㎥ or more to less than 2,000㎥ (installation deadline: end of 2009), 30% of installation costs will be covered; for those with 500㎥ to less than 1,000㎥ (end of June 2011), 40% will be covered; and for those with 300㎥ to 500㎥ (end of 2012), 50% will be covered. Gas stations seeking early installation can submit their gas vapor recovery installation plans to Suwon City, and after review, receive support.

A city official stated, "We plan to prioritize support for small-scale fuel retailers with lower annual sales volumes," adding, "Since this matter is related to citizens' health, we will ensure swift processing."