According to Pulse by Maeil Business News Korea,
South Korean energy companies are aggressively seeking opportunities in carbon capture, utilization and storage (CCUS) business, which is considered as an important emissions reduction technology that can be applied in heavy industries.
SK E&S, the hydrogen business unit of SK Group, has a CCUS business model of capturing and storing carbon dioxide (CO2) produced from liquefied natural gas (LNG) manufacturing at Caldita-Barossa gas field under development in Australia. It also aims to achieve eco-friendly power generation in Korea.
SK Innovation in May signed an agreement with Korea’s state-run Korea Gas Corporation (KOGAS) to use the East Sea gas field, which will finish its natural gas production in June 2022 as a CO2 storage.
Lotte Chemical has established a carbon capture facility at its Yeosu first factory to produce 600,000 tons of clean hydrogen starting 2030. Hyundai Oil Bank said it would build a CCUS facility that produces construction materials by using desulfurized plaster and CO2, byproducts of oil refining, in partnership with DL E&C.
The Korean energy firms are jumping into the CCUS market as CCUS has emerged as a key greenhouse gas reduction technology.
Adam Baylin-Stern, a CCUS analyst at International Energy Agency (IEA), said during a recent interview with Maeil Business Newspaper that CCUS is the only technology that makes carbon neutrality possible in heavy industry, as it enables more practical and inexpensive energy transition than decommissioning a coal-fired power plant.
In its sustainable development scenario, the IEA estimates CCUS to contribute 15 percent or 10 billion tons per year of cumulative reduction in emissions. It also suggests that reaching net zero will be virtually impossible without CCUS.
The global CCUS market is projected to grow 29.2 percent per annum from 2021 to $25.3 billion in 2026, according to market researcher IndustryARC.
By Choi Keun-do and Choi Mira
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (August 20, 2021)