Malaysia’s state energy company, 6 Korean companies establish carbon value chain
Samsung Engineering and five other Korean companies signed a memorandum of understanding with Malaysia’s state energy company to establish a carbon value chain between the two countries, the companies said Wednesday.
The signing ceremony between Petroliam Nasional Berhad (Petronas), a Malaysian state-run oil company, and the six Korean companies — Samsung Engineering, Samsung Heavy Industries, SK Energy, SK Earthon, Lotte Chemical, and GS Energy — was held at Petronas Twin Tower in Kuala Lumpur, Malaysia, with representatives from the companies in attendance.
The goal of the project, named Shepherd CCS Project, is to create a full carbon value chain between Korea and Malaysia using carbon capture and storage (CCS) technologies.
Through the Shepherd CCS Project, carbon dioxide emitted at Korea’s industrial complexes will be captured and transported to Malaysia to be stored.
Petronas will secure carbon storage sites in Malaysia with SK Earthon.
Samsung Engineering will supervise the overall business development and work on building the domestic hub where carbon captured at industrial sites is transported before being sent to Malaysia.
Oil refiners SK Energy and GS Energy, along with Lotte Chemical, a petrochemical company, will participate in setting up the hub as well. The companies will also oversee the carbon capturing process.
Samsung Heavy Industries will oversee the shipping process of carbon dioxide from Korea to Malaysia.
The Korean and Malaysian companies plan to assess the feasibility of the project before developing the business, said SK Innovation in a release Wednesday. SK Innovation owns 100 percent of SK Energy and SK Earthon.
The project, which encompasses all stages of the carbon value chain, is the first of its kind in Asia, according to SK Innovation. The Shepherd CCS Project aims to enhance efficiency in carbon processing and transporting, and therefore speed up Korea’s carbon emission reduction plan.
Korea hopes to achieve carbon neutrality by 2050.
The companies are looking to expand the business in the future with other carbon-emitting companies in Korea.
“I’m glad to partake in this meaningful project for global carbon neutrality along with industry leaders in each sector,” said Park Cheon-hong, Samsung Engineering Executive Vice President.
“CCS is becoming a key measure in achieving global carbon neutrality,” said SK Energy’s Executive Vice President Hong Jeong-eui.
“As international carbon transport through shipping and overseas carbon storage is expected to become more popular, we will successfully proceed with the project based on partnerships with companies [...] through all value chains, from capture to transport to storage.”
Lee Sung-hoon, GS Energy vice president, said that “this project will grow to become a cross-border CCS business that would expand from Korea to Asia, amid Korea’s transition to carbon neutrality,” and called for active support from the governments.
Emry Hisham, head of Petronas’ carbon management division, said that “the feasibility studies undertaken through this collaboration will identify suitable technologies for the CCS and transportation value chain, bringing Petronas closer towards establishing Malaysia as a leading regional CCS solutions hub.”
BY SHIN HA-NEE [email@example.com]