Posco, Kepco to collaborate on energy businesses

Posco Chairman Kwon Oh-joon, left, and Kepco CEO Cho Hwan-eik shake hands after signing a deal to cooperate on new energy development and overseas business on Friday at POSCO Center in Seoul. Provided by Kepco

Posco and Korea Electric Power Corporation (Kepco) signed a memorandum of understanding Friday to collaborate on energy businesses and technology and to pioneer in new markets abroad.

Korea’s No. 1 steelmaker and the state-run utilities firm will form a consortium for projects overseas, increasing their competitiveness as a result, Kepco said in a statement.

“The MOU brings together Korea’s representative steelmaker and utilities firm. Using each other’s best strengths, an optimal consortium for winning overseas orders will be formed,” Kepco said.

“Our collaboration on new energy technologies and businesses will generate new markets for the advancement of the nation’s creative economy.”

The alliance will set up groups of experts from each company. The teams will focus on winning new orders for independent power plants in the Middle East, Southeast Asia and South and Central America.

Earlier this year, Saudi Electricity signed four energy-related agreements with a group of companies that included Kepco, calling for collaborations in nuclear and renewable energy.

The Kepco-Posco consortium will work on developing technologies for carbon emissions and sulfur hexafluoride reductions, as well as on the use of waste heat for power generations. It will also cooperate in the areas of energy storage systems and substitute natural gas.

“Global competition for new energy technology and energy businesses is becoming fiercer. Collaboration between the two companies with their technological expertise and experiences overseas will boost both firms’ competitiveness,” said Kepco CEO Cho Hwan-eik in a statement.

The think thanks of the two companies, Kepco Economy & Management Research Institute and Posco Research Institute, will also have active exchanges of ideas at jointly held symposiums and forums.

The two will work on new technological trends, too, including the convergence of energy and information and communications technology, exchanging technological expertise and jointly working on generating more businesses in the area.

“Coming together, with Kepco’s management know-how in electricity supply business, and Posco’s technological expertise in new energy technology and businesses, we will be able to take lead in both local and world energy market,” said Posco CEO Kwon Oh-joon in the joint statement.

The signing ceremony was held at Posco’s headquarters in Seoul on Friday.

BY PARK JUNG-YOUN [park.jungyoun@joongang.co.kr]