PRESS RELEASE: Minister of Economic Development has signed The Concession Agreement with the Consortium

Ulaanbaatar, Mongolia – 20 June 2014: On 28 August 2013, the Consortium of Mongolian, French, Japanese, and Korean partners was selected as a preferred bidder to build, operate and transfer the 450MW Combined Heat and Power Plant #5 in Ulaanbaatar from a competitive tender organized by the Government of Mongolia. Today, the Minister of Economic Development has signed The Concession Agreement with the Consortium. This important step allows the Consortium to enter into exclusive negotiations for a 25-years Power Purchase Agreement (PPA) with the Government of Mongolia.

Newcom Group, the first group to successfully commence and operate 50MW Salkhit Windfarm in 2013, has formed a multinational consortium consisting of the French company GDF Suez, the largest independent power producer in the world, Sojitz, Japan’s sixth largest trading corporation, and Posco Energy, South Korea’s largest private power producer.  

The plant with a total installed capacity of 450MW of Power and 590MW of heat will utilize a Circulating Fluidized Bed Combustion technology. Such technology combined with the cogeneration of power and heat shall significantly reduce SOx, NOx and other toxic emissions by using less fuel, without compromising the quality and reliability of the energy supply.  

Mongolia has harsh continental climate, therefore reliable and secure power and heat generation are vital for ensuring national security and well-being of the people.  As the existing power plants are ageing, the construction and operation of CHP 5 Power Plant will be critical in providing reliable, energy efficient electricity and heat supplying Mongolia’s rapidly growing economy. [Also, this project advances the energy sector development, the key economic leverage, to new level and introduces the latest techniques and technologies to this sector.

Background on Consortium partners:
GDF Suez- The world leader Independent Power Producer employs 147,200 people worldwide and achieved revenues of €81.3 billion in 2013. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices.

Sojitz Corporation - Japan’s leading trading corporation.
POSCO ENERGY - South Korea’s largest private power producer.