POSCO Group Partners with Mongolia's Newcom on Heat Pump-Based Energy Project Collaboration

Securing a Bridgehead for Expansion into Central Asia
Focusing on Projects Utilizing Waste Heat from Thermal Power Plants
Exploring Future Cooperation in Renewable Energy and Beyond

POSCO Group is collaborating on Mongolia's energy transition project as it expands its global energy business.

On the 9th (local time), Kim Sung-hwan, Minister of Climate, Energy and Environment (right), took a commemorative photo with Badralho Naidalaa, Minister of Energy of Mongolia, at the Energy Ministry building in Ulaanbaatar, Mongolia, before their discussion. POSCO Group

On July 9 (local time), POSCO International announced on July 10 that it had signed a memorandum of understanding (MOU) with Newcom, a leading Mongolian energy and infrastructure company, in Ulaanbaatar, Mongolia. The agreement covers cooperation on an energy project worth 100 million dollars.

The signing ceremony was attended by Chang In-hwa, Chairman of POSCO Group; Lee Gyein, CEO of POSCO International; and Batarmunkh Baldbaatar, Chairman of Newcom, as well as other key officials.

Chairman Chang stated, "Mongolia is a strategic hub with abundant energy resources and high growth potential. Through a close partnership, we will contribute to building local energy infrastructure and use this as a foothold for expanding our energy business into Central Asia."

Mongolia is working at the national level to resolve air pollution caused by its coal-based heating system during winter and to transition its energy sector by utilizing abundant renewable resources such as solar and wind power. POSCO International plans to align with these policy priorities by accelerating the development of local energy infrastructure and new energy businesses in Mongolia.

The two companies will establish a cooperative framework centered on a district heating business using heat pumps that utilize waste heat from thermal power plants. Heat pumps are a representative energy transition technology that recovers wasted heat energy for reuse in heating.

Under the partnership, POSCO International will oversee business development, project financing (PF), technology, and EPC (engineering, procurement, and construction) management, while Newcom will be responsible for local investment, licensing, and securing sites.

Going forward, the two companies plan to consider expanding their cooperation into additional areas such as renewable energy.

With this agreement, POSCO International has established a local business operation system with a Mongolian company. The company intends to continue identifying subsequent projects to support Mongolia's energy transition, leveraging its accumulated expertise from energy development to infrastructure construction and business operations, and thereby accelerating its entry into the Central Asian energy market.

This content was produced with the assistance of AI translation services.