Hyundai Engineering & Construction and Korea National Oil Corporation Establish Foothold for Korea's First Commercial CCS Project

Received Preliminary Basic Design Contract for CCS Demonstration Project Utilizing Donghae Gas Field
Annual 1.2 Million Tons Carbon Dioxide Capture, Transport, and Storage Project

Hyundai Engineering & Construction announced on the 13th that it has signed a contract with Korea National Oil Corporation for the ‘Preliminary Basic Design (Pre-FEED) for the Carbon Capture and Storage (CCS) Demonstration Project Utilizing the Donghae Gas Field.’

Hyundai Construction Gyedong Building. [Photo by Hyundai Construction]

The CCS demonstration project utilizing the Donghae Gas Field is a project to capture, transport, and store 1.2 million tons of carbon dioxide annually in the depleted Donghae Gas Field. It aims to achieve the national greenhouse gas reduction target (NDC) and commercialize technology through safe and economical CCS implementation.

This project, which is the first attempt to commercialize CCS domestically, is scheduled to proceed from 2025 to 2030. Prior to this, Hyundai Engineering & Construction will carry out the preliminary basic design for six months to prepare the facility construction plan for the preliminary feasibility study and ensure the successful launch of the demonstration project.

The Donghae Gas Field, located 58 km southeast of Ulsan, was discovered in 1998. It is the only domestic oil resource production facility where gas production started in 2004 and was finally terminated on December 31, 2021.

The depleted reservoir layers, where crude oil and natural gas have accumulated underground, have accumulated data from exploration, development, and production processes and have secured sufficient storage capacity, making them suitable for use as carbon dioxide storage sites.

Hyundai Engineering & Construction will perform the preliminary basic design targeting infrastructure in both land and offshore areas necessary for carbon dioxide transport and storage, including existing facilities such as offshore platforms and subsea injection facilities used during natural gas production, as well as new facilities like hub terminals and pipelines.

Through this, design specifications and conceptual designs will be derived, and standards necessary for progressing the Donghae Gas Field CCS project will be established, including technical specifications by work type, lists of required equipment, permits and approvals, and project costs.

Since the results of this preliminary basic design will serve as the basis for establishing policies and promotion strategies for the overall Donghae Gas Field CCS project, Hyundai Engineering & Construction plans to concentrate its accumulated technological capabilities through related projects and research.

Hyundai Engineering & Construction intends to enhance its competitiveness across the entire field?from design to construction of carbon dioxide storage facilities?by advancing core technologies in the field of underground carbon dioxide storage through this project.

So far, Hyundai Engineering & Construction has solidified its position as a leading CCS company by participating in international joint research on optimal storage design and facility conversion technology using depleted gas fields in Southeast Asia and the Netherlands, establishing cooperative systems with advanced technology countries. Additionally, based on its design capabilities for wet capture facilities capable of large-scale carbon dioxide capture, it is conducting the project ‘Development of CO2 Capture, Liquefaction, and Utilization Technology for Blue Hydrogen Production’ as the lead organization of a national project under the Ministry of Science and ICT, focusing on research across the entire CCUS value chain to strengthen global technological competitiveness.

A Hyundai Engineering & Construction official stated, “Hyundai Engineering & Construction has continuously invested in research and development for new businesses aimed at carbon neutrality and has established a system capable of actively responding to new energy transition projects. Starting with this project, which is the first domestic commercialization of CCS, we will accelerate our entry into domestic and overseas CCS projects and do our utmost to achieve global carbon neutrality.”

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