POSCO to Develop US$1.8 Billion Coal Gasification Plant in Brazil

South Korea’s POSCO (NYSE:PKX), the world’s fourth largest steelmaker, has signed a protocol of intentions with Brazil’s Rio Grande do Sul  to construct a $1.8 billion coal gasification plant.

As quoted in the press release:

The deal provides incentives for the plant and a partnership between Posco and local coal miner Copelmi.

With a 2 million m3/day capacity, the plant will produce coal-derived synthetic natural gas (SNG) through coal gasification. Rio Grande do Sul signed an MOU with local gas distributor Sulgás to market the SNG produced at the Posco-Copelmi plant, the report said.

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