SGC Energy signs 10-year contract to supply liquid CO2

South Korea’s SGC Energy Co. recently signed a contract to supply liquid carbon dioxide to a domestic company for 10 years starting January 2024 through its carbon capture and utilization (CCU) facilities under construction, industry sources said on Dec. 19.

The value of the deal was not disclosed under an agreement between the two parties.

The private power provider is building a 57 billion won ($43.8 million) facility at its combined heat and power plant site in Gunsan, North Jeolla Province. Construction of the facility, with a floor area of 6,500 square meters, is set to be completed by October 2023.

The CCU plant is expected to capture up to 300 tons of carbon dioxide daily and reduce 100,000 tons of greenhouse gases per year. The captured carbon will be transferred to 99.9% pure liquid carbon dioxide, an essential element for the dry ice used in grocery deliveries. 

The company expects demand for ultra-high-purity carbon dioxide to soar, creating significant cash flow, an SGC Energy official said. 

The power supplier signed a technology transfer contract with state-run Korea Electric Power Corp. (Kepco) in November 2021, licensing in carbon capture. The technology allows for more than 90% of carbon dioxide to be separated from the gas emissions of power plants.

The global carbon capture, utilization and storage market is forecast to reach $7 billion by 2030, with a compound annual growth rate of 13.8% from 2021 to 2030, according to US-based Allied Market Research.

Write to Seo-Woo Jang at suwu@hankyung.com
Jihyun Kim edited this article.