By SUZANNE DOWNING
May 18, 2026 – South Korean industrial giant POSCO International has signed a memorandum of understanding with the State of Alaska that could touch nearly every corner of the state’s long-term development ambitions, from geothermal energy and renewable fuels to rare earth minerals and the long-discussed Knik Arm bridge.
The agreement, announced Monday in Anchorage, was signed by Gov. Mike Dunleavy and POSCO International President and CEO Lee Kye-in. The two-year memorandum establishes a framework for cooperation on six major Alaska projects that state officials say could reshape the state’s energy, transportation, and industrial future.
The projects span Southcentral, Southeast, and Cook Inlet regions and include geothermal development, sustainable aviation fuel production, port expansion, critical minerals extraction, and transportation infrastructure.
Among the projects outlined in the MOU is the proposed geothermal development at Mount Augustine, one of Alaska’s most active volcanoes. The concept would pair geothermal energy production with a separate “green methanol” initiative using geothermal power to produce lower-emission fuel products.
The agreement also includes a proposed sustainable aviation fuel refinery at Point MacKenzie, a project aimed at capitalizing on the borough’s deep-water port and industrial corridor. Sustainable aviation fuel, commonly called SAF, has become a rapidly growing focus for airlines and governments seeking lower-carbon alternatives to conventional jet fuel.
Another centerpiece of the agreement is the advancement of the Bokan-Dotson Ridge Rare Earth Project in Southeast Alaska, considered one of the more significant rare earth deposits in the United States. Rare earth elements are viewed as strategically critical for defense systems, electronics, batteries, and advanced manufacturing, with the United States seeking to reduce dependence on Chinese supply chains.
The memorandum also revives discussion surrounding the long-debated Knik Arm Crossing, the proposed fixed bridge connection between Anchorage and the Mat-Su Valley that has circulated in Alaska political and transportation circles for decades but has repeatedly stalled over cost and financing concerns.
Additional projects include expanded infrastructure at the Port MacKenzie terminal and development tied to synthetic fuel production.
“Alaska is open for business, and this agreement reflects the world-class investment opportunities our state offers,” Dunleavy said in a statement released Monday. “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.”
Lee said the agreement is intended to establish a long-term strategic partnership between the Korean company and Alaska.
“Alaska’s abundant resources, strategic location, and strong development potential are closely aligned with our global capabilities in energy, infrastructure, and critical minerals,” Lee said. “We look forward to working closely with Governor Dunleavy and the State of Alaska to explore these projects responsibly and create meaningful opportunities that can help strengthen supply chains and support sustainable growth for both parties.”
The agreement itself does not obligate either side financially and does not commit the projects to construction. Instead, it establishes a framework for future negotiations, information sharing, feasibility discussions, and possible definitive agreements tied to individual projects.
Still, the breadth of the agreement signals Alaska’s continued effort to market itself internationally as a resource and infrastructure hub at a time when global demand for energy security, critical minerals, and Arctic shipping access continues to grow.
The announcement also comes as Alaska lawmakers continue wrestling over major in-state gasline legislation and broader questions about how aggressively the state should pursue large-scale industrial and energy development projects. It was announced on the eve of the Alaska Sustainable Energy Conference, which will start on Tuesday in Anchorage.
