Carbon Captured in Korea to Be Stored Underground in Indonesia... SK Innovation E&S Launches Storage Cooperation

Crossing Borders to Reduce Carbon Dioxide
First Step in International Cooperation for Carbon Neutrality
"Mutual Benefits for Both Countries... Strengthening Korea-Indonesia Partnership"

SK Innovation E&S, the energy business division of SK Innovation, has agreed to jointly assess the feasibility of a technology that would transport carbon dioxide emitted in Korea to Indonesia for storage. This collaboration is expected to serve as a catalyst for international joint efforts to reduce carbon emissions.

SK Innovation E&S announced on the 17th that it had signed a Memorandum of Understanding (MOU) with SKK Migas, the Special Task Force for Upstream Oil and Gas Business Activities of Indonesia, for the "Korea-Indonesia Cross-Border Carbon Capture and Storage (CCS) Joint Research" at the Fairmont Ambassador Hotel in Yeongdeungpo-gu, Seoul, on the 13th. This agreement was reached as a result of bilateral talks between the Ministry of Trade, Industry and Energy and the Indonesian Ministry of Energy, which took place during the "K-CCS International Conference 2025" on the 12th.

Dewi Adi Nugroho, Deputy Director of Non-Traditional Oil and Gas Development at the Ministry of Energy and Mineral Resources (MEMR) of Indonesia (from left), Ilyoung Kim, Head of Upstream Development and Operations at SK Innovation E&S, and Sungtae Seo, Director of Energy Technology at the Ministry of Trade, Industry and Energy, are posing for a commemorative photo at the signing ceremony of the Memorandum of Understanding for the "Korea-Indonesia Cross-Border Carbon Capture and Storage (CCS) Joint Research" held on the 13th at the Fairmont Ambassador Hotel in Yeongdeungpo-gu, Seoul. SK Innovation E&S

This collaboration is a preliminary study to examine whether it is practically feasible to transport carbon dioxide captured in Korea to Indonesia by ship and store it underground. Both parties plan to review the business feasibility by referencing European cases and will also address the necessary legal and regulatory improvements. To this end, they have established a working group and an operations committee to actively pursue joint research in stages.

The technology of capturing carbon dioxide and injecting and isolating it in depleted oil fields or saline aquifers is one of the key tools in global carbon neutrality strategies. However, Korea is considered to lack sufficient land for large-scale storage. As a result, "cross-border reduction projects," which involve capturing carbon dioxide in Korea and sending it overseas, are gaining attention.

Indonesia possesses the largest potential for carbon dioxide storage in Southeast Asia. It is estimated to have storage space of about 573 billion tons in saline aquifers and 5 billion tons in depleted oil and gas fields. The Indonesian government has also designated CCS as a key tool for achieving its 2060 carbon neutrality goal and is establishing the institutional framework through a presidential decree.

Luki Agung Yusgiantoro, Secretary General of SKK Migas, stated, "This collaboration will provide valuable insights for both countries," and added, "We hope Indonesia becomes the center for carbon storage in the Asia-Pacific region." Ilyoung Kim, Head of Upstream Development and Operations at SK Innovation E&S, said, "Cross-border carbon dioxide storage cooperation is an essential strategy for reducing greenhouse gases and achieving carbon neutrality," and emphasized, "Through this joint research, we will further strengthen our strategic cooperation with Indonesia."