Korea's POSCO Energy to acquire coal power plant

In line with 2021 coal plant investments.

South Korea-based POSCO Energy, a subsidiary of POSCO, has signed a contract with the Tongyang consortium to acquirer 100 percent of Tongyang Power, a coal power plant company, for consideration of KRW431bn.

According to a research report from Nomura, the acquisition of Tongyang Power will increase POSCO's capacity to 5,300MW by 2021 from its existing power
production capacity of 3,300 MW, through Incheon LNG Power Plant (3,000MW) and Gwangyang Gas Power Plant (300MW).

Here's more from Nomura:

The reporting indicated that POSCO Energy plans to invest KRW4tn to build coal plants by 2021. POSCO Energy expects construction of the coal power plants will bring synergy withing POSCO group regarding plant design & construction, procurement of coal, etc.

According to Korea Hydro & Nuclear Power, coal power production has cost advantage compared to other energy sources such as LNG, oil, etc. In Korea, there are three privately-owned coal power plants to be constructed: Dongbu Power Dangjin – 1,000MW by 2018; GS E&R –1,190MW by 2016; and Tongyang Power – 2,000MW by 2021. Besides privately-owned plants, KEPCO is running coal power plants with capacity of 24,534MW.