Posco has succeeded in developing the first domestic use of heat generated from industrial sites as a source to heat local areas. Since July 2000, Posco had invested a total of 28.5 billion won in the pipe work construction project that connects the Pohang Works with the Hyoja and Jigok residential areas, located 15km away from the works. The construction was completed on 31 October. Posco is now supplying heat to nearby areas by collecting waste-heat generated from the heat within works facilities, such as raw material treatment plants, continuous casting plants and hot rolled plants’ reheating furnaces. The collected heat is then used inside a large boiler as a heat reservoir, which generates 260 i ÆC steam or 90 i ÆC hot water that are used as the sources of the supplied heat.