POSCO’s PKX unit, POSCO INTERNATIONAL, has signed a memorandum of understanding (“MOU”) with the city of Ulaanbaatar, Mongolia, to promote a heat supply project using sewage heat. According to the agreement, POSCO INTERNATIONAL will work to supply waste heat from the central sewage treatment plant to nearby redeveloped residential areas.
A joint feasibility study is to be completed by the first half of 2026, following which the project is expected to enter full-scale implementation in the second half under a 15-year Build-Operate-Transfer (“BOT”) model if viability is confirmed. The system will provide district heating to about 4,000 households of a newly constructed residential complex.
Ulaanbaatar being a witness to the most severe air pollution during winter, POSCO INTERNATIONAL’s initiative becomes crucial to address the issue caused by coal-based heating, as recycling waste heat from the sewage treatment process will reduce both greenhouse gas emissions and fine dust.
The company has prior experience in this field, having successfully carried out a sewage heat-based district heating project at Seoul’s Tancheon Water Treatment Center. That project supplies 204,900 Gcal of heat annually to 20,000 households in Gangnam-gu, saving energy equivalent to 20,490 tons of oil and reducing 33,972 tons of carbon dioxide emissions.
The Ulaanbaatar city government views this partnership as a way to address pollution, improve the quality of life and support sustainable urban development. This MOU highlights POSCO's sustainable heating technologies and global business capabilities as it plans to expand beyond Mongolia to other regions in Central Asia.
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Published Date:2025-09-23