Mount Augustine geothermal site included in MoU between Alaska and South Korean firm
Augustine Volcano, Alaska (source: Coombs, M. L. / Alaska Volcano Observatory / U.S. Geological Survey)
Carlo Cariaga
26 May 2026
The Mount Augustine geothermal project tops the list of projects included in the MoU signed between Alaska and South Korean company POSCO International.
The Mount Augustine Geothermal Project has been included in the list of six projects in a Memorandum of Understanding (MoU) between the State of Alaska and South Korea-based POSCO International. Exploration and development of the Mount Augustine Geothermal Project has been headed by GeoAlaska and Ignis Energy for the past three years.
Under the terms of the MOU, the State of Alaska and POSCO International will exchange information, explore project framework, and negotiate formal definitive agreements over a two-year period. The agreement is effective for two years and does not create binding financial obligations for either party, but establishes the foundation for detailed project development work to proceed.
Among the six projects listed in the MOU, the “Mount Augustine Geothermal Energy Project” tops the list. Next on the list is “Mount Augustine Green Methanol Project” – a value-added downstream sustainable liquid fuel manufactured using sustainable geothermal energy produced on Augustine Island.
POSCO International is South Korea’s largest trading company. POSCO Holdings, the controlling owner of POSCO International, is the 5th largest conglomerate in South Korea. POSCO Holdings is also the sole owner of POSCO, a steel manufacturing company.
“This MOU marks an important step in building a long-term, strategic partnership between the State of Alaska and POSCO International,” said Lee Kye-in, President and CEO of POSCO International.
“Alaska’s abundant resources, strategic location, and strong development potential are closely aligned with our global capabilities in energy, infrastructure, and critical minerals.
“Alaska is open for business, and this agreement reflects the world-class investment opportunities our state offers,” added Alaska Governor Mike Dunleavy. “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.”
The Mount Augustine project
GeoAlaska, LLC owns 15,146 acres of State of Alaska geothermal leases covering the identified onshore and offshore geothermal resource on the south flank of Mount Augustine located in the Lower Cook Inlet. Ignis Energy took a strategic equity position in GeoAlaska, LLC in 2023, bringing capital and technical development capability to the project.
Over the past three years, GeoAlaska and Ignis Energy have committed significant private capital to resource characterization, completing three independent geophysical surveys including broadband magnetotelluric profiling and 3D joint MT-gravity inversion. Monte Carlo reservoir simulation supports a P50 power potential of 224 MWe. These geophysical data and the reservoir modeling were published in GRC Transactions, Vol. 48 (2024).
Currently, GeoAlaska and Ignis are moving forward toward drilling the Kamishak #1 well to delineate the permeability and fluid characteristics within the relatively shallow geothermal reservoir zones underlying Mount Augustine.
“Mount Augustine represents exactly the profile Ignis Energy targets: a technically de-risked, resourceconfirmed geothermal asset with a clear path to hybrid hydrothermal and EGS production and a growing roster of strategic public and private partners,” said Richard Calleri, Founder and CEO of Ignis Energy.
“The State of Alaska and POSCO International have reached the same conclusion our technical team has reached over the last three years. Ignis Energy is fully committed to seeing this project through to production.”
“The State of Alaska and POSCO International have identified Mount Augustine as a cornerstone of Alaska’s sustainable energy future and this MOU validates three years of geophysical and engineering work. The vertically integrated project at Mount Augustine represents a massive injection of economic activity and sustainable power production to the benefit of all Alaskans,” added Paul L. Craig, Founder and CEO of GeoAlaska.
Source: Email correspondence and Office of Governor Mike Dunleavy
