POSCO International partners with Mongolian firm on energy transition projects
Quick Look
POSCO International and Mongolian energy company Newcom signed a $100 million MOU for energy transition projects in Mongolia, focusing on district heating using heat pump technology to combat severe winter air pollution.
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Why It Matters
POSCO International and Newcom have signed a $100 million MOU to collaborate on energy transition projects in Mongolia, focusing on district heating to address severe winter air pollution.
SEOUL, July 10 (Yonhap) -- POSCO International, a trading and energy affiliate of POSCO Group, said Friday it will collaborate with Mongolian energy company Newcom on energy transition projects in the Central Asian nation.
The company said it signed a US$100 million memorandum of understanding on an energy partnership with Newcom during a ceremony in Ulaanbaatar held on the sidelines of President Lee Jae Myung's state visit to the nation.
Under the agreement, the two companies will collaborate on a district heating project based on heat pump technology that recycles waste heat from thermal power plant cooling water into heating water.
POSCO International will oversee overall project development and project financing, as well as engineering, procurement and construction, while Newcom will be responsible for local investment, permits and approvals, and securing project sites.
The partnership comes as Mongolia seeks to expand the use of renewable energy sources as part of efforts to tackle severe winter air pollution caused by its coal-dependent heating system.
Open Questions
- Timeline for project completion?
- Specifics of heat pump technology implementation?
- Long-term financial viability?
