The Ministry of Science and ICT has selected five locations nationwide for the carbon capture and utilization (CCU) project, with two sites in Chungnam being chosen. Starting from 2026, an investment of 350 billion won will be made for demonstrations, with LG Chem participating.
On the 23rd, it was announced that Seosan and Boryeong in Chungnam have been selected for the Ministry’s project to transform captured carbon dioxide into eco-friendly aviation fuel (e-SAF). According to the province, Chungnam’s Seosan and Boryeong, along with Yeosu in Jeonnam, Gangneung and Samcheok in Gangwon, and Pohang in Gyeongbuk were selected for this initiative.
CCU technology involves capturing carbon dioxide emitted from power and industrial processes and converting it into useful materials like methanol, battery components, or e-SAF. In Seosan, a site within Hanwha Total Energy’s facility passed the selection process. With an investment of 200 billion won, the project will focus on demonstrating technology to directly hydrogenate carbon dioxide and produce e-SAF and eco-friendly naphtha.
In Boryeong, the project will take place at a site owned by Korea Midland Power, with LG Chem leading the project and collaboration from the Korea Institute of Science and Technology (KIST) and Hyundai Oilbank. This project will convert carbon dioxide from a thermal power plant into e-SAF, with a budget of 150 billion won.
If these projects move forward after a preliminary feasibility study by 2026, the commercialization of CCU technology is expected to accelerate. There are plans to establish a production plant through a joint venture between Italy’s Eni Live and LG Chem in Seosan, aiming to capture the e-SAF market. Previously, a joint investment agreement was signed between Eni Live and LG Chem to establish a joint venture by 2027, investing $640 million to build a hydrogenated vegetable oil (HVO) production plant at LG Chem’s site in Seosan. This HVO, made by adding hydrogen to plant-based feedstocks like waste cooking oil, is used as aviation fuel due to its non-freezing properties at low temperatures, with an annual production target of 300,000 tons.
Governor Kim Tae-heum stated that the CCU mega project in Seosan and Boryeong is an opportunity for Chungnam to overcome its reputation as a major carbon dioxide emitter and become a hub for the future eco-friendly energy industry focused on e-SAF.