■ SK Earthon acquires joint exploration rights for the G-15-AP Block in Australia’s offshore Carnarvon Basin

■ Over the next six years, the company will evaluate CO₂ storage capacity and business feasibility

■ Expected synergies with SK E&S in CCS development and establishing a global CCS hub

On August 8 (KST), SK Earthon, an exploration and production (E&P) subsidiary of SK Innovation, announced that it has secured joint exploration rights for an offshore carbon dioxide (CO₂) storage site in the G-15-AP Block of the Carnarvon Basin, Northern Australia. With a 20% stake in this project, SK Earthon partners with InCapture*, which holds 75%, and CarbonCQ**, which has 5%. This acquisition significantly strengthens SK Earthon’s resource development efforts and accelerates its advancements in Carbon Capture and Storage (CCS) technologies.

* InCapture: a specialized CCS firm under Australia’s LongReach Capital Investment
** CarbonCQ: a consulting firm specializing in CCS technologies

Over a six-year period, SK Earthon will assess the storage capacity and viability of the block. Should the project prove feasible, the company plans to obtain development and injection rights from the Australian government without additional bidding and aims to start CO₂ injection operations by 2030.

This significant milestone is expected to create synergy between SK Earthon’s resource development and its CCS initiatives. With a robust history of over 40 years in overseas resource development, SK Earthon has honed its exploration and development skills, currently participating in 10 blocks and 3 LNG projects across 8 countries. Leveraging its expertise and technological prowess, the company aims to enhance the sustainability of its resource development business while advancing its CCS projects.

The G-15-AP block is of particular importance as it is the first block designated for the capture and storage of carbon emissions from Australian industrial operations. If successful, this CO₂ storage project will not only meet Australian demands but also facilitate collaboration with Korean CO₂ capture firms, creating sustainable solutions between Korea and Australia.

Sygnergies are also anticipated through collaboration with SK E&S ahead of its merger with SK Innovation. The combined resource development and CCS capabilities of SK Earthon and SK E&S heighten the prospects of establishing a global CCS hub, especially in the offshore Australian regions.

Additionally, this collaboration is expected to fast-track the CCS hub linked to SK E&S’s ongoing Bayu-Undan CCS project*** in the Timor Sea. As the global push for carbon neutrality intensifies, securing large-scale overseas CO₂ storage sites becomes increasingly critical. This initiative is poised to provide stable storage solutions for CO₂ emissions from Korea and the Asia-Pacific region.
*** The Bayu-Undan CCS project involves storing CO₂ from the development of the Barossa Caldita gas field and blue hydrogen production in offshore depleted gas fields in the Timor Sea.

In November last year, Australia passed a bill to ratify amendments to the London Protocol, enabling the transboundary movement of CO₂ and opening new opportunities. With its vast CO₂ storage potential and geographic proximity to Korea, Australia is an ideal partner for CO₂ transportation. This latest acquisition is expected to boost SK Earthon’s collaboration with the Australian government and industry, addressing domestic storage shortages.

In a previous move, SK Earthon joined Malaysia’s Petronas and others in the Korea-Malaysia Shepherd CCS project for CO₂ capture and storage. Domestically, the company is involved in national projects for high-performance offshore CO₂ storage monitoring and large-scale CCS infrastructure development. By 2030, SK Earthon aims to secure storage for over 2 million tons of CO₂, scaling up to 5 million tons by 2040, and over 16 million tons by 2050.

Myeong Seong, CEO of SK Earthon, stated, “With this CO₂ storage exploration right, we aim to create synergy between our resource development and CCS efforts for sustainable growth. Working with SK E&S, we are proactively securing overseas storage sites, leveraging our 40 years of resource development experience to drive successful CCS initiatives.”

[Photo] Location of the G-15-AP Block in the offshore Carnarvon Basin, Northern Australia