Posco Energy to invest in 1,200MW thermal power plant in Vietnam

POSCO Energy Co. has signed a memorandum of understanding (MOU) agreement on with Nghe An provincial government to develop the Quynh Lap II thermal power plant project in Vietnam.

The project involves two 600MW-reactors which will produce a total annual capacity of 1200 MW. The thermal plant is expected to be built in Quynh Lap commune, Dong Hoi Industrial Zone – Hoang Mai town, on an area of 171 ha and 37 ha of water surface. The expected total investment of the project is nearly US$2.5 billion.

The new power plant project will be conducted on a build, operate and transfer (BOT) contract where POSCP sells power produced at the plant to state-run Vietnam Electricity (EVN) for 25 years after construction, and transfer the ownership to the government.

POSCO Energy plans to conduct feasibility test and strike related contracts on the new Quynh Lap Ⅱ coal-fueled power plant. It will also break ground in 2022 and complete construction by 2026.

The company completed construction and started operations of Mong Duong 2 coal-fired thermal power plant in Quang Ninh Province in Vietnam last October.