S-OIL, Smart ESG Management... Supporting SME Growth and Reducing Greenhouse Gas Emissions

[Asia Economy Reporter Hwang Yoon-joo] S-OIL is strengthening ESG (Environmental, Social, and Governance) management through win-win cooperation with small and medium-sized enterprises.

On the 18th, S-OIL signed a memorandum of understanding (MOU) for a carbonic acid business collaboration with Dongkwang Chemical, an industrial gas manufacturer, to reduce carbon dioxide emissions.

S-OIL supplies by-product gas containing a large amount of carbon dioxide emitted from the hydrogen production process at its Ulsan plant through a pipeline, and Dongkwang Chemical refines the carbon dioxide from the by-product gas using Carbon Capture & Utilization technology to produce industrial and food-grade liquefied carbon dioxide and dry ice. Through this carbonic acid collaboration, S-OIL is expected to achieve an annual greenhouse gas (carbon dioxide) emission reduction effect of 100,000 tons.

S-OIL has been supplying by-product gas as raw material to Dongkwang Chemical, which is adjacent to the Ulsan plant (located in Onsan-eup, Ulju-gun, Ulsan City), via a pipeline since 2016. Dongkwang Chemical, currently producing liquefied carbon dioxide on an annual scale of 100,000 tons in cooperation, plans to expand its production facilities and double its output to 200,000 tons per year starting from the end of 2022, based on this MOU.

An S-OIL official stated, "This collaboration was promoted as part of ESG management to reduce greenhouse gas carbon dioxide emissions and support growth by expanding raw material supply necessary for small and medium-sized enterprises to increase production facilities."

Meanwhile, S-OIL is actively investing in discovering various business models to respond to the global trend of strengthening carbon neutrality and to reduce carbon dioxide emissions in the long term, including eco-friendly hydrogen production (green-blue hydrogen). Since 2019, it has distributed high-efficiency cook stoves free of charge in Myanmar, securing 10,000 tons of carbon emission credits annually, and last year, it invested in 'Glory Entech,' a Clean Development Mechanism project company, improving the quality of life for residents in Bangladesh while securing 13,000 tons of carbon emission credits annually.

This content was produced with the assistance of AI translation services.