Ulaanbaatar: POSCO International, a trading and energy affiliate of POSCO Group, announced its collaboration with Mongolian energy company Newcom on energy transition projects in the Central Asian nation. The announcement came after the signing of a US$100 million memorandum of understanding on an energy partnership, which took place during a ceremony in Ulaanbaatar. The event was held on the sidelines of President Lee Jae Myung's state visit to Mongolia.
According to Yonhap News Agency, the agreement outlines that the two companies will work together on a district heating project utilizing heat pump technology. This technology aims to recycle waste heat from thermal power plant cooling water into heating water, contributing to the nation's energy transition efforts. POSCO International will oversee the overall project development, including project financing and engineering, procurement, and construction tasks. Meanwhile, Newcom will handle local investment, securing necessary permits and approvals, and identifying project sites.
This partnership is timely as Mongolia is actively seeking to expand the use of renewable energy sources. The initiative is part of the country's strategy to address severe winter air pollution problems, primarily caused by its reliance on coal-dependent heating systems. The collaboration between POSCO International and Newcom marks a significant step forward in Mongolia's journey towards cleaner energy solutions.