Korean Steel Giant Signs Framework for Collaborating on Six Other Alaska Megaprojects

The MOU covers six projects, some of which have been on the drawing boards for decades; others are on the cutting edge.

The Mount Augustine Geothermal Energy Project would tap the heat from one of Alaska’s most active volcanic systems, located on an island in Lower Cook Inlet. Furthermore, the Mount Augustine Green Methanol Project would apply that geothermal energy to the production of methanol, an industrial chemical that also has potential use as a combustible fuel.

The Point MacKenzie SynFuel Refinery Project would establish a sustainable aviation fuel refinery near the Matanuska-Susitna Borough’s deep-water port corridor. POSCO is also willing to back the Port MacKenzie Port Terminal Infrastructure Project, which would support increased cargo and industrial activity there.

The Bokan-Dotson Ridge Rare Earth Project refers to a significant rare earth element deposit on Prince of Wales Island. Ucore Rare Metals progressed the project to the advanced exploration stage and had proposed an innovative processing hub in Ketchikan before deciding in 2023 to locate its strategic minerals complex in Alexandria, Louisiana. Installation and testing at that facility are continuing throughout 2026, and Ucore still counts Bokan-Dotson Ridge as a potential source of rare earths in its supply chain.

Explore Frameworks, Exchange Information

The most surprising of the six megaprojects in the MOU is a Knik Arm Crossing and Expressway, for a more direct surface route between Anchorage and the Mat-Su. The project has been idle since 2018, when then-Governor Bill Walker vetoed legislative funding due to the cost. However, in 2024, the Alaska Department of Transportation and Public Facilities commissioned a new study in light of advances in tunneling technology. It is not clear if the Expressway (a term never used in connection with the Knik Arm Crossing before) would be above or below the water.

Under the terms of the MOU, the State and POSCO will explore frameworks, exchange information, and negotiate formal definitive agreements on any or all of the six projects. The agreement is effective for two years and does not create binding financial obligations for either party.

“This MOU marks an important step in building a long-term, strategic partnership between the State of Alaska and POSCO International,” says Lee. “Alaska’s abundant resources, strategic location, and strong development potential are closely aligned with our global capabilities in energy, infrastructure, and critical minerals.”

Dunleavy calls POSCO’s interest a reflection of Alaska’s world-class investment opportunities. “POSCO International is a global leader, and their interest in Alaska validates what we have long known: our resources, our geography, and our people position us for extraordinary economic growth,” Dunleavy says. “This is the kind of partnership that creates jobs, grows our economy, and secures Alaska’s future.”