Summer 'Dry Ice for Delivery' Relief... S-OIL to Increase 'Carbon Dioxide' Supply

Carbonated Raw Material Gas Supply Doubled
Contributing to Resolving Domestic Supply Chain Instability

Dry ice, welding, cleaning, and other industrial sectors rely heavily on the industrial gas 'tansan' (carbon dioxide), which has been facing supply instability, but its supply is expected to ease.

S-OIL has decided to increase the supply of raw materials for carbon dioxide production to help stabilize the domestic supply of tansan.

S-OIL (CEO Anwar Al Hizazi) announced on the 13th that it will double the supply of by-product gas used as raw material for tansan production to Dongkwang Chemical (CEO Choi Nam-ho), an industrial gas manufacturer, starting mid-month, providing 200,000 tons annually.

S-OIL's production line committed to stabilizing the carbonated supply chain.

S-OIL and Dongkwang Chemical have been cooperating on an annual 100,000-ton liquefied tansan business since 2016 through the CCU (Carbon Capture & Utilization) project, which captures carbon dioxide and utilizes it as a product.

S-OIL supplies by-product gas containing a large amount of carbon dioxide emitted from the hydrogen production process at its Ulsan plant via pipeline, and Dongkwang Chemical refines the carbon dioxide from the by-product gas to produce industrial and food-grade liquefied tansan and dry ice.

An S-OIL official explained, “The increase in tansan supply greatly contributes to stabilizing the domestic tansan supply and expands the supply of raw materials necessary for small and medium-sized enterprises to expand their production facilities, which is an important achievement in ESG management supporting growth.”

Tansan (CO2) is an industrial gas used across various industries such as shipbuilding (welding), semiconductors (special cleaning gas), distribution (dry ice), and agriculture (plant growth promoter).

Tansan is produced using by-product gas generated from refineries and petrochemical companies as raw material. The supply sources and quantities of raw material tansan are limited, and the supply volume fluctuates significantly depending on the operating rates of refinery and petrochemical facilities, causing difficulties in the tansan industry.

Recently, with the expansion of fresh food delivery services increasing the demand for dry ice and the rise in demand for welding tansan from shipbuilders destabilizing the supply chain, the industry has requested government-level measures to secure tansan supply. In this context, S-OIL’s plan to increase supply volume is good news.

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