S-OIL Supports Stability of Carbon Supply Chain

Carbonated Beverage Manufacturer Donggwang Chemical Doubles Supply of Byproduct Gas for Carbon Dioxide Extraction

S-Oil will double the supply of by-product gas used as a raw material for carbon dioxide production to Dongkwang Chemical, an industrial gas manufacturer, from mid-this month, increasing the annual supply to 200,000 tons. By increasing the supply of raw materials for carbon dioxide production, S-Oil is expected to contribute to the stable supply of carbon dioxide in Korea.

A worker at S-OIL Onsan Plant is inspecting newly installed equipment to increase the supply of carbonic acid to Dongkwang Chemical. Photo by S-OIL

S-Oil and Dongkwang Chemical have been cooperating on an annual 100,000-ton liquefied carbon dioxide business since 2016 as part of the 'CCU (Carbon Capture & Utilization)' project, which captures carbon dioxide and utilizes it as a product. S-Oil supplies a large amount of by-product gas containing carbon dioxide emitted from the hydrogen production process at its Ulsan plant through pipelines, and Dongkwang Chemical refines the carbon dioxide from the by-product gas to produce industrial and food-grade liquefied carbon dioxide and dry ice.

An S-Oil official said, “This increase in carbon dioxide supply greatly contributes to the stability of domestic carbon dioxide supply and is an important achievement in ESG management by expanding the supply of raw materials necessary for small and medium-sized enterprises to expand their production facilities and support their growth.”

Carbon dioxide (CO2) is an industrial gas used across various industries such as shipbuilding (welding), semiconductors (special cleaning gases), distribution (dry ice), and agriculture (plant growth promoters). It is produced using by-product gases generated from refineries and petrochemical companies as raw materials. Due to limited sources and quantities of raw material carbon dioxide and the volatility of supply depending on the operating rates of refinery and petrochemical facilities, industries demanding carbon dioxide are facing difficulties.

In particular, with the recent increase in dry ice demand due to the expansion of fresh food delivery services and the rise in carbon dioxide demand for welding by shipbuilders causing supply chain instability, the industry has requested the government to establish measures for stable carbon dioxide supply and demand. Therefore, the industry welcomes S-Oil’s increase in supply volume.

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