November 22, 2024

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SK Earthon CEO Myeong Seong (SK Innovation)

SK Earthon, an exploration unit under SK Innovation, announced on Thursday that it secured the right to explore carbon dioxide reservoirs off the northern coast of Australia, looking to bolster its resource development and carbon capture and storage, or CCS, businesses.

According to SK Earthon, the Korean oil and gas exploration company and Australian CCS firms -- InCapture and CarbonCQ -- won the exploration rights for the mining sector named G-15-AP located in the Carnarvon Basin from the Australian government.

SK Earthon will assess the storage capacity and feasibility of the block over the next six years to decide on the development of the carbon dioxide storage site. If the commercial value of the site is confirmed, the company expects to secure development and injection rights from the Australian government without further bidding and begin full-scale carbon dioxide injection operations in 2030.

SK Earthon pointed out that the Australian exploration rights will create synergy with the Korean company’s existing resource development businesses, noting that it is participating in 10 mining and liquefied natural gas projects in eight countries.

The G-15-AP mine is the first mine mainly dedicated to CCS of emissions from the Australian industrial sector. SK Earthon plans to come up with sustainable solutions for Korea and Australia by cooperating with the domestic CCS firms should it successfully secure the carbon dioxide storage of the Australian site.

“Starting with this carbon dioxide storage exploration right acquisition, SK Earthon plans to generate synergy between its two pillars of resource development and CCS business to achieve sustainable growth,” said Myeong Seong, CEO of SK Earthon.

“SK Earthon is proactively securing overseas storage sites in collaboration with SK E&S. Based on the resource development capabilities accumulated over the past 40 years, we will work with SK E&S to carry out successful CCS projects.”

By Kan Hyeong-woo (hwkan@heraldcorp.com)