SK E&S to pursue cross-border CCS with Australia’s Santos

SK E&S, the clean energy affiliate of South Korea’s No. 2 conglomerate SK Group, has signed a deal on cross-border carbon capture and storage (CCS) with Australian oil and gas giant Santos Ltd.

The venture will involve the collection of CO2 generated in South Korea for shipment to a storage facility Down Under.

The two companies’ CCS venture is based on CO2 storage centers in Australia under joint development, including one in the G-11-AP mining block in waters off the country’s northern coast.

By using the block for storage, they will jointly launch their cross-border CCS project of sending carbon dioxide collected from South Korea to an Australian storage facility.

To this end, demand for CO2 storage in South Korea will be secured at venues like power plants and industrial sites and development of CCS centers will come in a timely fashion.

The two companies will also collaborate to form the institutional basis for promoting cross-border CCS.

By securing additional CCS centers, SK E&S said it expects to form a global hub in the sector in waters near northern Australia and East Timor.

Write to Hyung-Kyu Kim at khk@hankyung.com