South Korean companies are set to enter Mongolia's coal-dependent power and heating market. The initiative aims to connect Mongolia's demand for energy transition, driven by its abundant wind and solar resources, with opportunities for the domestic clean energy industry to expand internationally.
On July 9, the South Korean and Mongolian governments agreed to cooperate in the energy transition sector in Ulaanbaatar. This agreement was facilitated by President Lee Jae-myung's state visit to Mongolia, broadening the scope of collaboration to include renewable energy generation, power infrastructure, and district heating.
Efforts will also focus on improving air quality in Ulaanbaatar through heating sector cooperation. Mongolia primarily relies on coal for power and heating, exacerbating air pollution issues in the capital during winter.
South Korea plans to transition the existing coal-based heating supply structure by utilizing heat pumps. POSCO International will implement a project at the Ulaanbaatar Combined Heat and Power Plant No. 4 (CHP-4) that uses waste heat from cooling water for heating. This involves raising the temperature of waste heat with high-efficiency heat pumps for district heating.
Once the project is fully operational, it is expected to shift the heating supply structure from coal-fired systems to an electric-based, high-efficiency heating system. This will help reduce air pollution and greenhouse gas emissions while showcasing the application of South Korean heat pump technology in international markets.
The initiative also includes entering the renewable energy sector, with POSCO International partnering with Mongolian renewable energy firm Newcom to jointly develop and invest in new energy projects, including heat pumps and onshore wind energy. Mongolia is recognized for its vast territory, stable winds, and long sunlight hours, making it a country with high potential for wind and solar power generation.
Expanding power infrastructure is another key area of cooperation between the two countries. To connect Mongolia's renewable energy potential with actual deployment, collaboration will also extend to power infrastructure and related technologies. The exchange of energy storage system (ESS) technology policies and the training of specialized personnel are also included in the cooperation agenda.
The two nations plan to establish a joint committee at the director level to monitor project progress and identify new initiatives. An energy business forum will also be promoted to increase interactions between companies.
The South Korean government anticipates that as Mongolia's energy transition progresses, there will be expanded business opportunities for domestic companies in renewable energy generation, power infrastructure, ESS, and heat pumps.
Kim Sung-hwan, Minister of the Climate and Energy Environment, stated, "Mongolia possesses tremendous renewable energy potential due to its vast territory and abundant wind and sunlight. However, it faces dual challenges of air pollution and greenhouse gas emissions due to its reliance on coal, stemming from a lack of technology and infrastructure. Through this diplomatic engagement, we will support Mongolia's energy transition based on our heat pump, renewable energy, and ESS technologies, ensuring that our companies can successfully enter the green energy market."
On July 9, the South Korean and Mongolian governments agreed to cooperate in the energy transition sector in Ulaanbaatar. This agreement was facilitated by President Lee Jae-myung's state visit to Mongolia, broadening the scope of collaboration to include renewable energy generation, power infrastructure, and district heating.
Efforts will also focus on improving air quality in Ulaanbaatar through heating sector cooperation. Mongolia primarily relies on coal for power and heating, exacerbating air pollution issues in the capital during winter.
South Korea plans to transition the existing coal-based heating supply structure by utilizing heat pumps. POSCO International will implement a project at the Ulaanbaatar Combined Heat and Power Plant No. 4 (CHP-4) that uses waste heat from cooling water for heating. This involves raising the temperature of waste heat with high-efficiency heat pumps for district heating.
Once the project is fully operational, it is expected to shift the heating supply structure from coal-fired systems to an electric-based, high-efficiency heating system. This will help reduce air pollution and greenhouse gas emissions while showcasing the application of South Korean heat pump technology in international markets.
The initiative also includes entering the renewable energy sector, with POSCO International partnering with Mongolian renewable energy firm Newcom to jointly develop and invest in new energy projects, including heat pumps and onshore wind energy. Mongolia is recognized for its vast territory, stable winds, and long sunlight hours, making it a country with high potential for wind and solar power generation.
Expanding power infrastructure is another key area of cooperation between the two countries. To connect Mongolia's renewable energy potential with actual deployment, collaboration will also extend to power infrastructure and related technologies. The exchange of energy storage system (ESS) technology policies and the training of specialized personnel are also included in the cooperation agenda.
The two nations plan to establish a joint committee at the director level to monitor project progress and identify new initiatives. An energy business forum will also be promoted to increase interactions between companies.
The South Korean government anticipates that as Mongolia's energy transition progresses, there will be expanded business opportunities for domestic companies in renewable energy generation, power infrastructure, ESS, and heat pumps.
Kim Sung-hwan, Minister of the Climate and Energy Environment, stated, "Mongolia possesses tremendous renewable energy potential due to its vast territory and abundant wind and sunlight. However, it faces dual challenges of air pollution and greenhouse gas emissions due to its reliance on coal, stemming from a lack of technology and infrastructure. Through this diplomatic engagement, we will support Mongolia's energy transition based on our heat pump, renewable energy, and ESS technologies, ensuring that our companies can successfully enter the green energy market."
* This article has been translated by AI.
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