Storing Carbon in Donghae Gas Field... Ulsan City Selected for Preliminary Feasibility Study of 'CCS Demonstration Project'

CO2 Capture→Transport→Storage Hub Urbanization

2.9529 Trillion KRW Invested Over 6 Years (2025-2030)

Production Effect: 2.7 Trillion KRW · Employment Effect: 22,000 Jobs

Ulsan City is leading the carbon capture and storage industry.

On the 5th, Ulsan City announced that the "Donghae Gas Field Utilization Carbon Capture and Storage (CCS) Demonstration Project," with a total project cost of 2.9529 trillion KRW, has been selected as a preliminary feasibility study target project.

CCS is a technology that captures representative greenhouse gas carbon dioxide (CO2) emitted from industries and stores it deep underground in onshore or offshore geological formations.

This demonstration project is a joint effort by the Ministry of Trade, Industry and Energy (leading) and the Ministry of Oceans and Fisheries (cooperating) to establish a foundation covering all aspects of CCS, including carbon dioxide capture, transportation, storage, and utilization, and to commercialize the technology.

The goal is to store 1.2 million tons of carbon dioxide annually, captured in Ulsan and other areas, underground in the Donghae Gas Field (58 km southeast offshore from Ulsan), where natural gas extraction has been completed, by 2030.

Carbon dioxide capture targets include hydrogen production processes in Ulsan (SK Energy, Aprotium), Korea Southern Power LNG power plant in Busan, and Hadong thermal power plant in Gyeongnam. The captured carbon dioxide will be temporarily stored at the "Carbon Dioxide Hub Terminal" to be established at Ulsan New Port.

Subsequently, the carbon dioxide will be transported via subsea pipelines to an offshore platform and finally stored in the Donghae Gas Field through subsea injection facilities.

The total project cost is 2.9529 trillion KRW, with 816.9 billion KRW from the national government, 88.8 billion KRW from local governments, and 2.0472 trillion KRW from the private sector (SK Energy, Aprotium, Korea National Oil Corporation).

The demonstration project period is six years, from 2025 to 2030. The detailed project is divided into infrastructure construction and technological innovation sectors.

In the infrastructure construction sector, ▲carbon dioxide capture plants ▲carbon dioxide hub terminal ▲offshore plants ▲CCS safety management center will be installed. The technological innovation sector will promote ▲large-scale CCS technological innovation ▲CCS monitoring, among others.

Ulsan City expects that with the promotion of this project, a total of 2.3003 trillion KRW will be directly invested in Ulsan, generating economic effects of ▲production worth 2.7531 trillion KRW ▲added value of 1.3193 trillion KRW ▲employment of 22,095 people, significantly revitalizing the regional economy.

Additionally, with the establishment of the country's first "Carbon Dioxide Hub Terminal" and "National CCS Safety Management Center" in Ulsan, it is anticipated that related research institutes, companies, and support facilities will move in and engage in active exchanges.

Kim Doo-gyeom, Mayor of Ulsan, said, "Amid global efforts to reduce greenhouse gases in response to climate change, I welcome the selection of this CCS project as a target for the Ministry of Economy and Finance's preliminary feasibility study, as Ulsan is the optimal site for CCS," adding, "We will actively cooperate with the government to ensure the project proceeds normally from 2025 after the feasibility study is completed."

Once the preliminary feasibility study for this project is completed, the Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries will prepare the national budget based on it.

Furthermore, to develop the CCS industry as a future new growth industry, the "Act on Carbon Dioxide Capture, Transportation, Storage, and Utilization" has been proposed and is under discussion.

If this act passes the National Assembly, it will be possible to attract a "CCS Cluster Complex" and a "CCS Promotion Center," positioning Ulsan as a mecca for CCS research and industry.

Ulsan City Hall.

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