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Posco pens deal for Brazilian coal gasification plant

World Coal,

South Korean steelmaker, Posco, has signed a protocol of intentions with Brazil’s Rio Grande do Sul state for the construction of a US$ 1.8 billion coal gasification plant near the Triunfor petrochemical hub.

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.

The deals come as Brazil continues to seek ways to diversify its energy matrix, which remains heavily dependent on hydroelectric plants.

Edited from various sources by Sam Dodson

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