Hanwha and Shell Join Carbon Capture Efforts... Korea-Malaysia 'Shepherd Project' Accelerates

Companies with experience and technological capabilities have newly joined the Korea-Malaysia CCS (Carbon Capture and Storage) project alliance.

On the 11th, SK Innovation announced that Korea National Oil Corporation, Hanwha Corporation, Air Liquide Korea, and Shell have joined the Shepherd CCS project, and a new MOU based on this was renewed and signed. Existing participants in the Shepherd CCS project include SK Innovation subsidiaries SK Energy and SK Earth On, Samsung Engineering, Samsung Heavy Industries, Lotte Chemical, and Malaysia's Petronas.

Aerial view of domestic herb garden [Photo by SK Innovation]

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The Shepherd CCS project involves capturing carbon dioxide generated from domestic industrial complexes, gathering it at a domestic hub, then transporting and storing it in Malaysia. With the expansion of participating companies this time, technological capabilities and expertise will be strengthened, and potential carbon capture sources secured, accelerating the project's progress.

This project has attracted attention as an Asia-wide CCS hub project where the entire value chain is being developed simultaneously. Recently, the role of CCUS has been further emphasized as national carbon dioxide reduction targets through CCUS have increased from 10.3 million tons to 11.2 million tons by 2030, increasing the importance of this project.

The participants signed an MOU for business development last August and are conducting feasibility studies, having tentatively secured at least one domestic hub site and one carbon storage site in Malaysia. To achieve economies of scale, they plan to seek additional domestic hub sites and Malaysian carbon storage sites, while continuing project development through supplementation and reinforcement of the business plan.

Shepherd CCS Project Schematic Diagram [Image Source=SK Innovation]

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