Korea and Australia Collaborate on CCS Projects, Key to Carbon Neutrality

Development and Operation of Australian CCS Project

Collaboration on Utilizing Carbon Emission Permits Based on CCS

On the 25th (local time), at the Four Seasons Hotel in Sydney, Australia, Kwon Yi-gyun, head of K-CCUS (third from the left), and officials signed a multilateral business agreement on CCS project cooperation during the 'Korea-Australia Business Round Table' and took a commemorative photo. (Photo by SK E&S)

[Asia Economy Reporter Moon Chaeseok] South Korea and Australia will jointly promote CCS (Carbon Capture and Storage) technology, a core technology for carbon neutrality. They plan to operate CCS projects on the Australian mainland and engage in various collaborations such as utilizing carbon credits based on CCS. CCS and CCU (Carbon Capture and Utilization) technologies are considered virtually the only technologies that make fossil fuels environmentally friendly, and public and private institutions from both countries have agreed to comprehensive business cooperation.

The K-CCUS Promotion Team announced on the 27th that it will establish an all-around cooperation system related to CCS with public and private institutions from South Korea and Australia. This MOU is part of follow-up measures to implement the 'Korea-Australia Carbon Neutral Technology Partnership' agreed upon during the summit between President Moon Jae-in and Australian Prime Minister Scott Morrison in November last year.

On the 25th (local time), at the 'Korea-Australia Business Roundtable' held in Sydney, Australia, the Promotion Team signed a multilateral business agreement on CCS project cooperation with Australia's national CCUS research institute 'CO2CRC,' energy company Santos, Korea Trade Insurance Corporation, SK E&S, and others.

The institutions agreed to jointly cooperate on ▲ CCS development in Australia and nearby areas such as the Bayu-Undan gas field ▲ cross-national carbon transport and storage ▲ utilization of the carbon credit market. The Promotion Team and CO2CRC will provide technical and policy support related to CCS development and operation. SK E&S and Santos will develop and apply carbon capture and storage technologies. These two companies are jointly promoting the Barossa-Kaladita gas field development project in Australia. The Korea Trade Insurance Corporation will assist in financing related to Australian CCS projects. Immediately after signing the agreement, the five institutions will form a working committee to share progress on CCS projects in Australia and exchange information.

On the 24th, the Promotion Team also signed a comprehensive business agreement with CO2CRC to support the practical implementation of this MOU. They will jointly promote carbon neutrality policy proposals, expert exchange programs, and international cooperation to secure carbon storage sites. Kwon Eegyun, head of the Promotion Team, said, "We expect that this multilateral business agreement will actively promote CCS technology cooperation and overseas CCUS reduction projects."

CCUS is a concept that adds CCU (Carbon Capture and Utilization) to CCS. It is a term that collectively refers to technologies that capture carbon emitted while using fossil fuels, compress and transport it, then store it underground on land or under the sea (CCS), or utilize it as chemical materials and other substances (CCU). According to the International Energy Agency (IEA), CCUS contributes 15% to carbon reduction in the '2070 Global Carbon Neutrality' scenario.

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