GDF consortium signs Concession Agreement for 415MW power plant in Mongolia
GDF SUEZ has announced that the consortium comprising GDF SUEZ (30%), Sojitz Corp (30%), POSCO ENERGY (30%) and Newcom LLC (10%) has signed a Concession Agreement for the combined heat and power CHP 5 plant in Ulaanbaatar, the capital of Mongolia.
The company said this important step allows the consortium to enter into exclusive negotiations for a 25-year Power Purchase Agreement (PPA) with the Government of Mongolia.
Following the signing of the PPA and financial close, the consortium will build and operate a $1.2 billion coal-fired CHP plant with electricity capacity of 415MW and steam capacity of 587MW. The plant will have three circulating fluidised bed boilers that use efficient control measures to significantly reduce emissions of particulates.
The GDF SUEZ group beat a bid from a partnership that included Samsung C&T Corp. and Korea Southern Power Co. Delays in selecting a winner stretched more than year as the government changed the proposed location of the plant, now slated to be built 15km east of downtown Ulaanbaatar.
The entire output from the plant will be purchased by the Mongolian government and the steam produced will be used for city heating in Ulaanbaatar. The new plant will help to meet the rising energy demand in Mongolia, which is largely driven by the mining sector and a growing population.
The Asia Pacific region is a key development platform for all of GDF SUEZ activities: power, gas and energy services. The group has set ambitious industrial objectives in the area:
- Accelerate development in new countries (India, Mongolia, the Philippines and Vietnam)
- Further develop LNG sales
