SK Earthon to explore building carbon dioxide storage in Australia

SK Earthon acquired exploration rights to offshore carbon dioxide storage in Australia, partnering with InCapture and CarbonCQ.

The location of the G-15-AP offshore site [SK EARTHON]

SK Earthon acquired the exploration rights to offshore carbon dioxide storage in Australia.

The oil company now has the ability to explore the G15-AP mining area in Western Australia's Carnarvon Basin, along with Australian carbon capture and storage (CCS) firm InCapture and CCS consultancy CarbonCQ.

The SK Innovation subsidiary will have a 20 percent stake in the project; InCapture, a subsidiary of LongReach Capital Investment, will take 75 percent and CarbonCQ 5 percent.

SK Earthon will investigate the size and the business value of the site over the next six years and decide whether to commence the construction of carbon dioxide storage. If the site is deemed economically viable, SK Earthon will begin the site development and carbon dioxide injection in 2030 without an additional bidding process.

“Acquiring the exploration rights synergizes with SK Earthon’s resource development business,” the company said in a news release Thursday, adding that it has been pursuing development resources for the past 40 years.

“G-15-AP is meaningful as it is the first mining area to capture and store carbon dioxide produced by industries in Australia.”

The company also added that it plans to work with the Australian government, Australian firms and Korean carbon dioxide injection companies on further projects to mitigate the lack of storage in Korea.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]