Decision to Develop CCS Demonstration Model for Donghae Gas Field and Study Future Business Expansion
Petroleum Corporation Conducts Storage Research... SK Inno Develops Capture Technology
[Asia Economy Reporter Hwang Yoon-joo] SK Innovation is partnering with Korea National Oil Corporation to tackle carbon issues by developing a carbon dioxide capture and storage (CCS) project.
On the 17th, SK Innovation announced that it signed a CCS memorandum of understanding (MOU) to successfully carry out a multi-ministerial national project promoted by the government. The multi-ministerial national project, detailed as multi-ministerial CCS sub-project 2, refers to the 'Development of a medium-scale CCS integrated demonstration model utilizing the Donghae gas field.'
Through this MOU, the two companies will jointly conduct research to develop a CCS demonstration model for the Donghae gas field and to expand future CCS-related businesses. Immediately after signing the MOU, a joint task force (TF) will be formed to derive the optimal model for the Donghae gas field CCS demonstration project and to review technologies and business feasibility for CCS business expansion.
As the global movement toward carbon neutrality accelerates, Korea has set a goal to capture and utilize/store 10.4 million tons of carbon dioxide annually by 2030. Of this, 6.4 million tons will be utilized, and 4 million tons will be processed through underground storage*.
To this end, the government has established a plan to begin underground carbon dioxide storage from 2025 by utilizing the Donghae gas field of the Korea National Oil Corporation, where natural gas production is soon to end. Additionally, the government supports research projects for the conceptual design of this demonstration project, with the Korea National Oil Corporation responsible for the storage sector and SK Innovation conducting technology development research for the capture sector.
The Korea National Oil Corporation will leverage the know-how and technology accumulated over 20 years of operating and managing the Donghae gas field to carry out the carbon dioxide storage part of this underground project. The corporation plans to inject a total of 12 million tons of carbon dioxide over 30 years, at 400,000 tons annually starting in 2025, into the empty underground space of the Donghae gas field.
Meanwhile, SK Innovation and SK Energy, responsible for the carbon dioxide capture sector, are promoting the development of optimal carbon dioxide capture technologies targeting industrial facilities in the Ulsan area. SK Energy plans to apply capture technology to a hydrogen plant within the Ulsan industrial complex to capture carbon dioxide generated during the process and intends to expand its application to major carbon dioxide-emitting processes within the industrial complex in the future.
Kim Jun, CEO of SK Innovation, said, "Considering the importance of the CCS business essential to realizing carbon neutrality in Korea, the development of various technologies and business experience across the entire value chain?from carbon dioxide capture to liquefied transport and storage?is indispensable." He added, "Starting with this MOU, SK Innovation looks forward to various carbon neutrality collaborations with Korea National Oil Corporation."
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