Posco International (Republic of Korea) plans to build a 12 MW RDF-powered CHP plant in Odessa, with 40 MW of thermal energy, and a total investment of $106 million.
This was reported by the press service of the Ministry of Community and Territorial Development of Ukraine (MinDevelopment).
"The construction project of a RDF-powered CHP plant is an example of a modern, integrated approach to addressing energy and environmental challenges. I express my gratitude to our Korean partners for their interest in cooperation under the EDCF mechanism. Both the Ukrainian and Korean sides have already started preparing the Conceptual Document of the project (PCP), which, in accordance with the procedures, will be officially submitted by the Ukrainian government," said Deputy Minister of Community and Territorial Development, Kostyantyn Kovalchuk, whose words were quoted in the Ministry’s statement.
It is noted that the city has already allocated a 4-hectare land plot, designated a responsible municipal enterprise, and all necessary engineering networks, including a gas pipeline, have been connected. The heat supply scheme has also been agreed with MinDevelopment.
The project’s payback period is estimated at 6.5 years.
Posco International is one of the largest Korean trading corporations, a subsidiary of POSCO. The corporation develops businesses in energy, agriculture, steel production, and ecology. In 2023, Posco International merged with its subsidiary Posco Energy.
For its part, the Odesa City Council reported on its Telegram channel that Posco E&C would build a waste incineration plant in Odessa with the option of generating electricity and heat.
"We have the support of the state and all the prerequisites for implementing an important project for Odessa. I hope that we can start it as soon as possible. First of all, it is an environmental initiative, and secondly, it involves the construction of heat and electricity generation, which are extremely necessary for our city," said Odessa Mayor Hennadiy Trukhanov.
The statement explains that the first dialogue between the Odessa authorities and Posco E&C about the prospect of building a waste incineration plant in Odessa took place in March this year in Warsaw. There, the South Korean company built one of more than 30 waste incineration plants in various countries around the world.
The Odesa City Council believes that the comprehensive waste management approach implemented in the Polish capital aligns with the concept that Odessa is exploring.
The message also specifies that the infrastructure project in Odessa has already been approved by the relevant ministry and included in the city’s heat supply scheme. As a result of negotiations, the parties agreed to work on organizational and technical issues necessary for the project’s implementation.
"We have close ties with Ukraine and have already implemented projects in the metallurgical and agro-industrial sectors, including in Mykolaiv, and we hope for continued active cooperation," said Posco E&C Vice President Kim Yong Hyun during a meeting at MinDevelopment, as quoted by the Odessa City Council.
