CCS Demonstration Project Worth 2.9 Trillion Won Selected for Preliminary Feasibility Study

Utilization of Donghae Gas Field from 2025 to 2030

Cattle grazing at the Otway International CCS Demonstration Facility in Australia. Approximately 95,000 tons of carbon dioxide are stored underground at this site. August 16, 2023 [Image source=Yonhap News]

On the 5th, the Ministry of Trade, Industry and Energy announced at the first fiscal project evaluation committee meeting of 2024 that the "East Sea Gas Field Utilization Carbon Capture and Storage (CCS) Demonstration Project" has been selected as a preliminary feasibility study target. The total project cost is 2.9529 trillion KRW (816.9 billion KRW in national funds, 88.8 billion KRW in local funds, and 2.0472 trillion KRW in private investment), and the project period is from 2025 to 2030.

The East Sea Gas Field Utilization CCS Demonstration Project will be led by the Ministry of Trade, Industry and Energy with cooperation from the Ministry of Oceans and Fisheries. Carbon dioxide captured in Ulsan and Busan will be compressed and liquefied at a hub terminal, then injected and stored into the depleted reservoir of the East Sea gas field through subsea pipelines.

Starting from 2030, it is expected to store 1.2 million tons of carbon dioxide annually, contributing to the achievement of the 2030 Nationally Determined Contribution (NDC) for greenhouse gas reduction. The Ministry stated that it has operated a planning committee composed of experts from industry, academia, and research, as well as officials from the Ministry of Oceans and Fisheries and local governments over 20 times to enhance the completeness of the project planning.

CCS (Carbon Capture Storage) is a project that captures and stores carbon dioxide emitted from factories and other sources. When combined with technologies that utilize the captured and stored carbon dioxide, it is called CCUS. CCUS is regarded as a key technology for realizing a carbon-neutral society. Major countries around the world support CCUS technology, and large-scale CCUS projects are underway in North America and Europe.

Choi Yeon-woo, Director of Energy Policy, said, "We hope that through the construction of large-scale CCS infrastructure and technological innovation, South Korea will gain world-leading competitiveness," adding, "We will make every effort to ensure the preliminary feasibility study passes promptly."