[Reading Science] Overseas Already Commercializing... Korea Races to Catch Up in Carbon Technology

Climate Change Response and Resource Securing Possible
'Carbon Circular Economy' Transition Essential
Major Tech Countries Already at Commercialization Stage
Korea Only at 80% Level, Laboratory Technology Only
"Active Investment Needed to Overcome Carbon Trade Barriers"

"Catch carbon dioxide (CO2), the main culprit of global warming and climate change!"

[Image source=EPA Yonhap News]

Reducing carbon dioxide emissions generated from transportation, industrial processes, and energy production has become a major challenge for humanity. It is not just about reducing emissions. Technologies that capture, store, and utilize carbon dioxide are also gaining attention. A representative example is Australia's large-scale underground carbon capture and storage demonstration center, which has recently attracted attention. The method involves extracting natural gas from 2,000 meters underground, then injecting and managing carbon dioxide into the empty spaces (depleted gas fields) and deep saline aquifers. In addition, major countries are actively investing in commercialization and research and development (R&D) in areas such as construction, materials, and energy. However, domestic technology is still at the laboratory level. Let’s take a look at the development and commercialization status of carbon capture, utilization, and storage (CCUS) technology, which is considered an essential technology for responding to climate change.

Directly handling carbon dioxide

CCUS (Carbon Capture, Utilization, and Storage) technology involves capturing carbon dioxide emitted from energy and industrial processes and either directly utilizing it or converting it into marketable products such as carbon monoxide. Technologies that only capture and store carbon dioxide, like the Australian example, are classified as CCS, while those that include utilization are classified as CCU. Capture involves selectively collecting carbon dioxide contained in flue gases from sources with the highest emissions, such as coal-fired power plants, steel industries, and refining and chemical processes, using three methods: wet, dry, and membrane separation. Storage refers to injecting the captured carbon dioxide from flue gases into underground geological formations for storage, with technologies for monitoring and permanent isolation under development.

Utilization means directly using or converting carbon dioxide into industrial raw materials and products. Through chemical and biological conversion or mineralization, carbon dioxide can be transformed into intermediates such as naphtha used in petroleum refining, which can then be used as fuels, chemicals, and construction materials. Carbon dioxide itself can also be used without conversion for industrial, food and beverage, and agricultural purposes. Since the Industrial Revolution, the concentration of carbon dioxide in the atmosphere has rapidly increased, becoming the main cause of the so-called greenhouse effect. Accordingly, renewable energy sources that do not emit carbon dioxide are being introduced. However, the International Energy Agency (IEA) considers it impossible to achieve carbon neutrality without CCUS technology. It states that 10% of the global cumulative carbon dioxide emission reduction target in the energy sector by 2050 (95% CCS, 5% CCU) must be met through CCUS. In particular, South Korea must reduce carbon dioxide emissions by 291 million tons by 2030, of which 11.2 million tons (3.8%) must be reduced through CCUS technology. Furthermore, to achieve carbon neutrality by 2050, the share of CCUS in the total carbon dioxide emission reduction target must be increased to 8?12.3%.

Essential for carbon resource circulation

CCUS technology is not only about reducing carbon emissions but is also considered an essential element for a paradigm shift toward a ‘carbon circular economy.’ Along with biomass and plastic recycling, it provides eco-friendly carbon sources, making it a core technology capable of achieving complete carbon resource circulation. Traditionally, basic hydrocarbons such as ethylene, propylene, butadiene, and BTX, as well as intermediate raw materials like P-X, VCM, and SM, are produced using crude oil or natural gas. These are processed into synthetic resins (such as polyethylene), synthetic fuels (caprolactam, TPA, etc.), synthetic rubber, and other products, which are ultimately consumed as plastics, fibers, rubber, and fine chemicals. The problem is that fossil raw materials are continuously consumed and greenhouse gases are continuously emitted during this process, creating a vicious cycle. CCUS can break this cycle and create an eco-friendly carbon circular economy by eliminating carbon source inflow and greenhouse gas emissions.

Technologies for utilizing carbon dioxide are specifically classified into chemical conversion, biological conversion, and mineral carbonation. Chemical conversion uses carbon dioxide as a reactant to convert it into fuels and basic chemical products through chemical reactions. It can produce synthesis gas, methanol, ethylene, liquid and gaseous fuels, and plastics. Biological conversion uses microalgae to produce biomass, which is then converted into biofuels and materials. Carbon dioxide can be converted into liquid and solid fuels, as well as bio-materials for cosmetics, food, and pharmaceuticals. Mineral carbonation converts carbon dioxide into carbonate forms for mineralization. It can produce construction materials, concrete curing agents, secondary products, and carbonate chemical products. However, there are many technical challenges. Jina Choi, a senior researcher at the Korea Research Institute of Chemical Technology, pointed out, "Carbon dioxide is a chemically very stable compound with very low reactivity, so a large amount of energy and reducing agents are required for conversion." She added, "Although it can be converted into various products, the problem is that the product groups and technical pathways are numerous, and the utilization potential depends heavily on existing markets." She further emphasized, "CCU technology requires highly advanced development strategies tailored to conditions, and it is necessary to strategically provide various supports and incentives so that the produced products can compete in existing commercial markets."

Overseas CCUS technology trends

As carbon neutrality has emerged as a major issue, CCUS technology demonstration and commercialization research overseas has greatly expanded over the past decade. Private companies have already moved beyond laboratory and demonstration stages to commercialization in areas such as building materials, chemical products, fuels, and polymers. Specifically, in construction materials, Canada’s Carbon Cure is a representative company. It has commercialized technology that injects carbon dioxide during concrete manufacturing to mineralize and fix carbon dioxide within cement. This technology not only reduces greenhouse gas emissions but also improves concrete strength and reduces cement and water usage simultaneously.

Germany’s Covestro produces polyurethane products using carbon dioxide as a reactant. They sell automotive interior materials and mattresses containing 20% carbon dioxide compared to conventional products.

Iceland’s CRI has commercialized technology that reacts carbon dioxide with hydrogen to produce methanol, which is used as a clean fuel. The energy required for this conversion is supplied by renewable energy (geothermal), completing a virtuous cycle. German automakers Audi and Porsche are developing synthetic fuel technologies and are at the demonstration stage. They produce synthetic fuels such as diesel (Audi) and gasoline (Porsche) by reacting carbon dioxide with hydrogen. This is a clean synthetic fuel (e-Fuel) production technology using direct air capture (DAC) and green hydrogen. Although the European Union (EU) banned the sale of engine cars after 2035, it has made an exception for clean synthetic fuel engines and encourages their use.

Government-level R&D investments are also expanding. The UK announced a new investment plan of $1.2 billion (1.5 trillion KRW) in December 2020 for CCUS infrastructure in the power and industrial sectors. The US also pledged $230 million (about 300 billion KRW) in the same year to support CCUS technology development and dissemination. Direct financial support is also being strengthened. The US provides tax credits of $60?180 per ton of carbon dioxide for CCU facilities, and Canada offers a 37.5% tax credit for CCU business investments.

Legal and institutional support is also active. Europe has included recycled carbon fuels in the renewable fuel category, and some regions in the US, Canada, and Europe operate joint purchasing systems for concrete using CCU technology. Overseas competition for market dominance is fierce. The CCUS market is expected to reach up to 1,529 trillion KRW (1.157 trillion USD) by 2030.

South Korea’s technology level in the CCUS field is about 80% compared to leading countries like the US and the EU. While there are many laboratory-level technologies, few have reached the commercialization stage after scale-up. In the industrial field, Hyundai Steel recently installed a 100-liter scale capture and reactor system at its Dangjin plant to pilot the conversion of carbon dioxide into formic acid. POSCO also plans to install a similar facility within the year. Since the EU and the US may use carbon emissions as trade barriers within a few years, active R&D investment and commercialization efforts are urgently needed.

Professor Ki-tae Park of Konkuk University said, "The capture sector has the smallest technology gap at about 85%, and the utilization sector is about 78%. It is necessary to accumulate experience and know-how and secure technological competitiveness in domestic CCUS technology through large-scale demonstration and commercialization projects and expanded R&D support."