The South Korean trading arm of POSCO Group said the deal, sealed in Ulaanbaatar on Thursday during President Lee Jae Myung's state visit, marks the group's bid to plant a foothold in Central Asia's energy market as it broadens beyond steel and batteries.
Under the agreement, the two firms will build a district-heating business anchored on heat pumps, capturing waste heat from the cooling water of the Ulaanbaatar CHP-4 power plant and converting it into heating supply.
POSCO International will oversee development, project financing and engineering, while Newcom handles local investment, permits and site securing.
"Drawing on our heat-pump, renewable and energy-storage technologies, the government will firmly back Korean firms entering the eco-friendly energy market," Climate Minister Kim Sung-hwan said, pledging support for the transition.
POSCO International said it would expand into follow-on renewable ventures with Newcom, including onshore wind, to seize an early position in the market emerging from Mongolia's energy transition.
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