POSCO International Signs $100 Million Energy Cooperation MOU with Mongolia's Newcom

POSCO International Signs $100 Million Energy Cooperation MOU with Mongolia's Newcom

Chairman Jang In-hwa says, "Mongolia is a strategic stronghold... bridgehead for Central Asian business expansion"

POSCO Group is set to expand its global energy business by cooperating in Mongolia's energy transition project.

POSCO International announced on the 10th that it signed a business agreement (MOU) for $100 million in energy business cooperation with Newcom, a leading local energy and infrastructure company, in Ulaanbaatar, Mongolia, on the 9th.

Key officials attended the signing ceremony, including POSCO Group Chairman Jang In-hwa, POSCO International CEO Lee Kye-in, and Newcom Chairman Batarmunkh Boldbaatar.

Chairman Jang said, "Mongolia is a strategic stronghold with abundant energy resources and high growth potential. Through this partnership, we will contribute to building local energy infrastructure and use it as a bridgehead for expanding our energy business in Central Asia."

Under this agreement, the two companies will pursue a district heating business based on 'heat pumps' that recycle waste heat from thermal power plant cooling water into hot water for heating.

POSCO International will oversee business development, project financing (PF), and technology and EPC (engineering, procurement, and construction) management, while Newcom will be responsible for local investment, permits and approvals, and site acquisition.

POSCO International plans to accelerate its entry into the Central Asian energy market while expanding follow-up projects in Mongolia, including renewable energy, in the future.