Shell, Hanwha latest members to join Shepherd CCS project

A computer-generated image of a domestic hub in Korea to collect captured carbon emissions before transporting them to Malaysia in the Shepherd CCS project [SK INNOVATION]

Shell Gas & Power and Hanwha joined SK, Samsung, Lotte and Petronas in a Korea-Malaysia carbon capture and storage (CCS) project.

The Shepherd CCS Project, a joint program between Korea and Malaysia, is aimed at capturing carbon dioxide emitted from industrial complexes in Korea and transporting it to Malaysia to be stored.

The project was first announced in August 2022, with SK Energy, SK Earthon, Samsung Engineering, Samsung Heavy Industry and Lotte Chemical entering a memorandum of understanding (MOU) with Malaysia’s state-run oil company Petronas, or Petroliam Nasional Berhad.

A year after the signing of the initial MOU, the agreement was extended to include new members Shell Gas & Power, Air Liquide Korea, Hanwha Corporation, and Korea National Oil Corporation.

The Korean and Malaysian companies are currently conducting a feasibility study for the project and have tentatively selected a domestic hub to collect captured carbon emissions in Korea and a storage site in Malaysia, SK Innovation said in a release Friday. 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.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]