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Carbon reduction and the Great Whale project

Published: 21 Feb. 2025, 00:00

Kim Jae-kyung

The author is the senior researcher at the Korea Energy Economics Institute.

The 2008 Academy Award-winning film "There Will Be Blood," which took home the Oscars for Best Actor and Best Cinematography, features a striking scene where a burning oil derrick shoots flames high into the sky. This phenomenon, caused by the pressure difference between underground and surface levels, plays a crucial role in the early stages of oil production. As production increases and pressure differential decreases, methods such as Enhanced Oil Recovery (EOR) are used to improve oil mobility by injecting substances like water or carbon dioxide into the reservoir.

The long-established EOR technology, which has been in use for over a century, is now gaining attention as a means to reduce carbon emissions. Capturing carbon dioxide from coal-fired power plants, industrial processes and natural gas treatment facilities and using it in EOR results in the partial storage of carbon dioxide in underground formations, achieving a Carbon Capture and Storage (CCS) effect. As of 2023, 82.4 percent of the world's 44 CCS projects are linked to EOR operations.

In the United States, major oil companies such as Occidental, ExxonMobil and Chevron are actively participating in CCS for EOR to take advantage of tax credits provided by the Inflation Reduction Act (IRA). While U.S. President Donald Trump has pledged to repeal or scale back the IRA, many experts believe it will be difficult to reduce support for EOR-related CCS initiatives, as they align with Trump's policies aimed at boosting oil and gas production. This suggests a promising outlook for EOR-CCS projects.

Korea also has a strong demand for CCS. To achieve its 2030 Nationally Determined Contributions (NDC) goal for greenhouse gas reduction, the country must sequester over 10 million tons of carbon dioxide through CCS. Currently, Korea primarily relies on overseas CCS projects, with the Boryeong Blue Hydrogen Project in South Chungcheong being a notable example. This project aims to produce 125,000 tons of blue hydrogen annually while sequestering the resulting carbon dioxide in the Bayu-Undan seabed off Timor-Leste. However, legal challenges related to international carbon dioxide trade and higher-than-expected storage costs have presented significant obstacles.

Ultimately, Korea must also consider CCS solutions within its own territory and territorial waters. To this end, the Korea National Oil Corporation (KNOC) launched the Gwanggaeto Project in 2022 to identify suitable CCS sites in the Korean continental shelf. The ambitious plan aims to drill 17 wells for CCS and seven for oil and gas exploration by 2031, one of which is the Great Whale Project. On Feb. 6, preliminary drilling results were announced, stating that it is still uncertain whether economically viable natural gas deposits exist. Since then, the project has become the center of heated political debate.

CCS technology is closely intertwined with oil and gas exploration and development. Regardless of political disputes, a broader perspective is needed. Viewing the Great Whale Project as part of Korea's broader CCS strategy to achieve carbon neutrality is essential. After all, once natural gas extraction is complete, the site can be repurposed as a CCS facility, just like the current East Sea gas field.

Translated using generative AI and edited by Korea JoongAng Daily staff.