SK Inno·SK Energy to Join Korea National Oil Corporation in Domestic CCS Project

Government-Led First Mid-Scale CCS Project
Annual Capture of 400,000 Tons of CO2 Starting in 2025

[Asia Economy Reporter Hwang Yoon-joo] SK Innovation and Korea National Oil Corporation (KNOC) are launching a domestic Carbon Capture and Storage (CCS) project. This project is the first medium-scale CCS initiative led by the government.

SK Innovation announced on the 26th that it signed a national project agreement regarding the CCS project utilizing KNOC's Donghae Gas Field. This is part of strengthening ESG (Environmental, Social, and Governance) management through a green balance approach aimed at removing carbon dioxide, a major cause of global warming, at the emission stage to benefit the global environment.

The government aims to establish more than 4 million tons of CCS annually by 2030. As the first phase, it plans to promote a CCS project using the Donghae Gas Field, where natural gas production will end in June 2022. From 2025, 400,000 tons of carbon dioxide will be captured and transported annually to be stored in the Donghae Gas Field.

KNOC, the lead institution for the national project, completed the selection and evaluation of the national project in February and finalized the project with three private companies including SK Innovation, as well as industry-academic-research institutions such as Kongju National University and Ewha Womans University, signing agreements. SK Innovation and SK Energy will develop optimal CO2 capture sources and economic capture technology models for industrial facilities in the Ulsan area, while KNOC and other private companies will participate in the transport and storage model development stages.

SK Innovation expects that participation in this national project will enable securing carbon emission credits through consultations with partner companies during future CCS project progress. Additionally, applying optimal CC technology to SK Energy’s Ulsan Complex (CLX) hydrogen plant will contribute to reducing carbon dioxide generated during the process and improve process efficiency.

Starting with participation in this national project, SK Innovation plans to continuously engage in government-led CCS projects to expand its CCS business.

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