S-Oil to Cut Annual Carbon Emissions by 160,000 Tons Through Self-Generation, Accelerating Decarbonization

[Financial News] S-Oil Corporation is accelerating efforts to improve energy efficiency and reduce carbon emissions at its Onsan Plant by investing 263 billion won in a natural gas self-generation facility. The company plans to raise its self-generation ratio from the current 10% to 42% in the future, while also pursuing a medium- to long-term decarbonization transition through hydrogen and carbon capture, utilization and storage (CCUS) projects.
S-Oil Corporation said on the 25th that it is building two gas turbine generators and two waste heat recovery boilers at the Onsan Plant, with completion targeted for the end of this year. The total investment amounts to 263 billion won. The company plans to use all electricity generated by the gas turbine generators internally to improve the stability of its power supply. It will also recycle the high-temperature exhaust gas produced during generation through the waste heat recovery boilers instead of releasing it directly.
By using recovered waste heat to produce high-pressure steam for plant operations, the company can reduce the operation of existing steam boilers. Through this, S-Oil Corporation expects to cut direct and indirect carbon dioxide emissions from the plant by about 160,000 tons a year.
Its self-generation capacity will also expand significantly. The Shaheen Project, S-Oil Corporation's largest petrochemical investment project ever and currently under construction, includes two gas turbine generators with a combined capacity of 150 MW. Once those units and the two additional generators being invested in separately are all in operation, the self-generation ratio at the Onsan Plant is expected to rise from about 10% to 42%.
S-Oil Corporation is not stopping at expanding self-generation facilities. It is also advancing medium- to long-term decarbonization projects centered on hydrogen and CCUS.
In particular, the company aims to expand its business across the entire hydrogen industry, from production to distribution and sales. To that end, it is strengthening cooperation with Saudi Aramco in areas such as research and development for low-carbon future energy production and venture investment.
The two companies have agreed to work together to identify potential business opportunities, including bringing competitive blue hydrogen and blue ammonia into Korea for storage and supply, as well as building the infrastructure needed to use them. They are also continuing to explore cooperation opportunities in hydrogen production projects based on clean hydrogen and clean ammonia.
Cooperation to expand the CCUS business is also continuing. S-Oil Corporation is seeking related business opportunities with potential partners while reducing carbon emissions by selling industrial carbon dioxide generated at the Onsan Plant to nearby external companies.
Meanwhile, S-Oil Corporation has supported the protection of natural monuments for 18 years since signing an agreement with the Korea Heritage Service in 2008. Its activities include support for research on protected species, volunteer work by employees and their families as well as customer families, a university student Natural Monument Guardians group, and classes on natural monuments for children from low-income families.
Through the "Eoreumchi conservation campaign" run with the Korea Freshwater Fish Conservation Association, the company has released about 50,000 juvenile fish into the wild so far. After successfully restoring the population of eoreumchi in its natural habitat, the company switched this year to protecting the golden mandarin fish. The golden mandarin fish is a native species whose population has fallen by about 50% over the past 10 years, and it is designated as a natural monument. S-Oil Corporation plans to speed up the transition to eco-friendly energy by combining short-term carbon emission reductions through self-generation facilities with medium- to long-term decarbonization projects such as hydrogen and CCUS.

[email protected] Lee Dong-hyeok Reporter