POSCO Energy Co will build a thermal power plant in Nghe An Province. The plant will produce an annual power capacity of 1200 megawatts (MW), with two 600 MW-reactors. — Photo fuelcellenergy.com

SOUTH KOREA — POSCO Energy Co. said on February 22 that it signed a memorandum of understanding (MOU) agreement on Sunday with Nghe An provincial government to build a thermal power plant, the second coal-fueled power plant to be built by the South Korean company in Viet Nam.

According to POSCO Energy, the company will build Quynh Lap II thermal power plant in Vinh City, Nghe An province in northern central Viet Nam, about 270 kilometers away from Ha Noi. The plant will produce an annual power capacity of 1200 megawatts (MW), with two 600 MW-reactors.

The energy arm of South Korea's steel giant Posco completed construction and started operations of Mong Duong 2 coal-fired thermal power plant in northern Quang Ninh Province in Viet Nam last October.

The provincial government has been inviting private companies to build power plants that could steadily feed power to the special district for heavy industries that will be formed to recruit steel and machinery manufacturers. The South Korean energy company will transfer ownership of the plant to the local government after it builds and operates the plant for a certain period based on the contract.

Yoon Dong-jun, POSCO Energy president, hoped that Quynh Lap II thermal power plant construction will help it further enhance its presence in Viet Nam. — pulsenews.co.kr