■ The Shepherd CCS Project set forth by SK Energy, SK Earthon, Samsung Engineering, Samsung Heavy Industries, Lotte Chemical, Petronas, and now joined by Korea National Oil Corporation, Hanwha Corporation, Air Liquide Korea, and Shell Gas & Power Developments B.V.

■ In the process of conducting a feasibility study, and to tentatively secure at least one storage site and one hub

■ Reinforcing the technology and expertise of each company, securing carbon capture sources to acceleration of business promotion

In the South Korea – Malaysia CCS (Carbon Capture & Storage) Project alliance, experienced and technologically capable companies have joined forces to propel the project’s advancement through strengthened capabilities.

The original participants in the Shepherd CCS Project include SK Energy, SK Earthon, Samsung Engineering, Samsung Heavy Industries, Lotte Chemical, and Petronas Malaysia. They now have been joined by new entrants including the Korea National Oil Corporation, Hanwha Corporation, Air Liquide Korea, and Shell Gas & Power Developments B.V. As announced on August 11, these companies have renewed and signed a Memorandum of Understanding (MOU) to solidify this collaboration.

The Shepherd CCS Project involves capturing carbon dioxide emitted from South Korean industrial complexes, aggregating it at a hub in the country, then transporting and storing it in Malaysia. As an inter-Asian CCS hub initiative, this project has attracted attention due to its simultaneous development of the entire value chain cycle. Moreover, the importance of this project is also magnifying as the role of CCUS (Carbon Capture Utilization and Storage) is being emphasized, such as the recent elevation in the South Korea national carbon dioxide (CO2) reduction target through CCUS from 10.3 million tons to 11.2 million tons by 2030.

The participating companies signed an MOU for project development in August of last year and are currently conducting a feasibility study. They have tentatively identified at least one domestic hub site and one Malaysian carbon storage site. Striving to attain an economically viable scale, the participating companies are investigating additional hub sites in South Korea and carbon storage sites in Malaysia, while continuing project development by revising and refining business plans.

It is expected that the expansion of participating companies will not only strengthen technology and expertise, but also accelerate the project by securing potential carbon capture sources. The new entrants, including Korea National Oil Corporation, Hanwha Corporation, Air Liquide Korea, and Shell Gas & Power Developments B.V., are set to leverage their experience and technological acumen in their respective fields to contribute to the collaboration and actively utilize existing partnerships with individual companies within the consortium to create better synergies.

[Graphics]

(Graphic 1) View map of the hub sites in South Korea

(Graphic 2) Shepherd CCS Project mimetic diagram