Reviews the plan to supply district heating generated from Ulaanbaatar’s central sewage treatment plant to 4,000 households
Plans to conduct a feasibility study by the first half of 2026 for a 15-year BOT project
On the 15th, POSCO INTERNATIONAL signed a memorandum of understanding (MOU) with the city of Ulaanbaatar, the capital of Mongolia, at Ulaanbaatar City Hall to promote a heating supply project utilizing sewage heat.
The signing ceremony was attended by key figures from both sides, including Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and T. Davaadalai, First Deputy Governor of Ulaanbaatar.
Under this MOU, POSCO INTERNATIONAL will drive the plan to supply waste heat from the central sewage treatment plant in Ulaanbaatar to nearby redeveloped residential areas.
Following a joint feasibility study to be completed by the first half of 2026, the project is expected to move into full-scale implementation in the second half of the year under a 15-year Build-Operate-Transfer (BOT) model, provided its economic and technical viability is confirmed. Upon completion, the project will provide district heating to a newly constructed residential complex of approximately 4,000 households.
Ulaanbaatar is known for having some of the world’s worst air pollution during winter, largely due to coal-based heating. POSCO INTERNATIONAL came up with a solution to address this issue by recycling waste heat from the sewage treatment process for district heating, thereby reducing both greenhouse gas emissions and fine dust.
The company has already showcased its expertise in the field through its district heating project utilizing sewage heat at the Tancheon Water Treatment Center in Seoul. Through this project, the company supplies 204,900 Gcal of heat annually to 20,000 households in Gangnam-gu, saving the equivalent of about 20,490 tons of oil and cutting 33,972 tons of carbon dioxide emissions.
“This MOU is significant as it not only helps address the environmental issues in Ulaanbaatar but also highlights POSCO Group’s environmentally friendly energy technologies and global business capabilities,” A POSCO INTERNATIONAL official said. “We plan to explore opportunities to expand this business model beyond Mongolia to other Central Asian regions.”
T. Davaadalai, First Deputy Governor of Ulaanbaatar, remarked, “We expect POSCO INTERNATIONAL’s proven sewage heat technology to offer practical solutions to the air pollution issues in the city. Through this collaboration, we will be able to create a new model that enhances citizens’ quality of life and supports sustainable urban development.”
▲ POSCO INTERNATIONAL signed an MOU with the city of Ulaanbaatar, Mongolia. From left: Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and T. Davaadalai, First Deputy Governor of Ulaanbaatar.