POSCO Group announced that its subsidiary POSCO International signed a business agreement with Newcom, a leading Mongolian energy and infrastructure company, in Ulaanbaatar on the 9th for energy project cooperation. The partnership aims to support Mongolia's energy transition initiatives. Mongolia is pursuing energy transition as a national priority to address air pollution caused by its coal-based heating structure during winter months.
POSCO International Signs Energy Cooperation MOU with Newcom
POSCO International formalized its partnership with Newcom through a memorandum of understanding signed in Ulaanbaatar on the 9th. Chairman Jang In-hwa of POSCO Group attended the signing ceremony. The agreement establishes a framework for collaboration on Mongolia's energy infrastructure development.
Chairman Jang stated at the ceremony: "Mongolia is a strategic hub with abundant energy resources and high growth potential. Through close partnership, we will contribute to building local energy infrastructure and use this as a bridgehead for expanding energy business in Central Asia."
Heat Pump District Heating Project Targets $100 Million Investment
POSCO International and Newcom plan to implement energy projects worth approximately $100 million in phases. The core initiative centers on heat pump-based district heating systems utilizing waste heat from thermal power plants. This approach directly addresses Mongolia's current reliance on coal for winter heating.
The two companies stated they will review expansion into additional cooperation areas including renewable energy in the future. POSCO International indicated it will continue to identify follow-up projects supporting Mongolia's energy transition to accelerate entry into the Central Asian energy market.
Chairman Jang Positions Mongolia as Central Asia Energy Hub
Chairman Jang In-hwa expressed POSCO Group's strategic vision for using Mongolia as a base to expand influence in the Central Asian energy market. The group views Mongolia's energy resources and growth potential as key assets for regional expansion.
Mongolia's national energy transition initiative stems from air pollution problems caused by its coal-dependent heating infrastructure during winter. The country has designated energy transition as a national priority to resolve these environmental challenges.
FAQ
What did POSCO International sign with Newcom on the 9th?
POSCO International signed a business agreement with Newcom in Ulaanbaatar on the 9th for energy project cooperation. The memorandum of understanding establishes collaboration on Mongolia's energy transition initiatives, with Chairman Jang In-hwa of POSCO Group attending the signing ceremony.
What is the scale of the energy project between POSCO and Newcom?
The two companies plan to implement energy projects worth approximately $100 million in phases. The core initiative focuses on heat pump-based district heating systems utilizing waste heat from thermal power plants to address Mongolia's coal-based heating structure.
