Hanwha, Shell join S.Korea-Malaysia carbon capture project

Korea National Oil Corp., Hanwha Corp., Air Liquide Korea and Shell have become the latest entities to join the Shepherd CCS project, a major cross-border initiative aimed at capturing carbon in South Korea and storing it in Malaysia, according to a Friday announcement.

This expansive carbon capture and storage (CCS) project seeks to harness carbon dioxide emissions from South Korean industries, centralize them at domestic hubs, and then transfer them to Malaysian storage facilities.

Once in Malaysia, this carbon is slated for conversion into liquid substances like methanol and formic acid or might be utilized as a gaseous energy source.

Serving as a pivotal CCS connection point between key Asian nations, the Shepherd CCS venture is notable for its simultaneous development across the entire value chain.

Last August, South Korean conglomerates including SK Energy, SK Earthon, Samsung Engineering, Samsung Heavy Industries, Lotte Chemical Corp. and GS Energy inked a memorandum of understanding (MOU) with Malaysia's state-run Petroliam Nasional Berhad, widely known as Petronas. As of now, these entities are immersed in feasibility assessments.

Moreover, they have tentatively confirmed at least one hub site in Korea and one carbon storage facility in Malaysia.

With plans to amplify their business strategies, these firms are on the lookout for more domestic hubs and Malaysian storage sites, eyeing economies of scale. The growing list of participants is anticipated to augment the project's technological prowess, aiming to capture more carbon sources and expedite the initiative.

The recent influx of participating companies is expected to bolster the project's technological reservoir, propelling its pace forward.

Write to Mi-Sun Kang at misunny@hankyung.com