SK Innovation accelerating green transformation

By Kim Bo-eun

SK Innovation (SKI) is seeking for its Ulsan Complex in to become a leading net-zero petrochemical plant, based on efforts to cut carbon emissions such as through carbon capture and utilization. Carbon capture and utilization refers to the process of capturing carbon dioxide to be recycled for further usage.

SKI's Ulsan Complex initiated carbon capture and utilization in 2003. Before then, the carbon dioxide generated in the process of creating hydrogen was not separated, thus was used as fuel with other gases, which resulted in it being emitted into the air.

Low-purity hydrogen produced in the hydrogen production process at the heavy oil cracking facility in the Ulsan Complex's first oil plant is recovered as high-purity carbon dioxide gas through a process of absorbing and separating carbon dioxide, a by-product, in a separate recovery facility. Afterward, the high-purity carbon dioxide gas is supplied to vendors that use carbon dioxide, such as for semiconductor etching, welding, dry ice producers, and plant cultivation.

SKI's Ulsan Complex said this process has the effects of protecting the environment as well as improving the efficiency of hydrogen production and refining processes. Business-wise, the process enables greater efficiency and therefore brings in additional revenue.

Based on these achievements, from next year, the company plans to recover carbon dioxide from the hydrogen production process of the Ulsan Complex's second oil plant and supply it to a plant near Ulsan. This is expected to help the carbon dioxide sales business expand to more than 300,000 tons on an annual basis.

Separate from this carbon capture and utilization process, SKI is also developing technology for carbon capture and storage. SKI and SK Energy signed a deal with the Korea National Oil Corporation in September for a carbon capture and storage project for the East Sea gas field.

A business feasibility evaluation is underway to introduce the optimal carbon capture technology to the hydrogen production process of the Ulsan Complex's third oil plant. The plan is to develop a model by 2023 for execution from 2025.

"SKI and SK Energy have secured greenhouse gas emission rights through the country's first large-scale carbon capture and storage project and in addition to improving hydrogen plant efficiency, we plan to explore additional business opportunities such as hydrogen fuel cell power generation using blue hydrogen," SK Energy's Head of Process Innovation Seo Kwan-hee was cited as saying in a press release.

"Based on this, we will make our petrochemical plant a role model of decarbonization, making this the basis of SKI affiliates' achievement of net zero by 2050.”