SK E&S is entering the U.S. carbon dioxide capture and storage (CSS) market. SK E&S announced on May 10 that it will invest $110 million (about 130 billion won) in Summit Carbon Solutions in the U.S.
When the investment is completed, SK E&S will secure a 10% stake in the company. In addition to SK E&S, energy companies such as ▲ Continental Resources ▲ Texas Pacific Group ▲ Summit Agricultural Group and private equity funds have invested.
Summit Carbon Solutions is pushing for a project to collect and store up to 12 million tons of carbon dioxide (CO2) generated by 32 corn ethanol production facilities in five U.S. midwest states annually.
The collected CO2 is stored underground in North Dakota via a total length of 3,200 kilometers (km) pipeline. It aims to begin construction in the first half of 2023 and launch commercial operation in the second half of 2024.
The U.S. aims to achieve carbon neutrality by 2050. With bioethanol produced through the CCS process, the company can get a carbon emission right. It provides a tax credit of up to $50 per ton. The U.S. CCS processing capacity is expected to grow about 12% annually from 29 million tons this year to 71 million tons by 2030.
"CCS is an important technology that can directly reduce CO2 generated in the process of utilizing natural gas as well as biofuels," said Yoo Jeong-joon, CEO of SK E&S. "We will do our best to actively promote low-carbon energy projects, including CCS, and contribute to the U.S. government’s goal of about 100 million tons of greenhouse gas reduction by 2030."
