POSCO International Expands Energy Business in Alaska with Geothermal Project

POSCO International is expanding its energy business in Alaska, shifting from liquefied natural gas (LNG) to geothermal power. The U.S. Department of Energy has begun reviewing support for a roughly 200-megawatt (MW) geothermal project that POSCO International is pursuing with the state of Alaska.

The 'Mount Augustine Geothermal Energy Project' involves exploration and drilling to confirm geothermal resources in the region's volcanic zone, where heat sources form at relatively shallow depths. This allows for stable power generation around the clock, unlike solar and wind energy.

POSCO International has a memorandum of understanding (MOU) with the state of Alaska on six development projects, including the geothermal energy project. The company signed a nondisclosure agreement (NDA) with GeoAlaska in March, reviewing technical data for about three months.

The MOU outlines that over the next two years, the parties will review the business structure and economics before deciding whether to sign definitive contracts for each project. POSCO International may expand its energy portfolio by producing green methanol using geothermal power, a plan under review for the Mount Augustine project.