South Korea-based shipbuilding major HD Hyundai Heavy Industries (HHI, KRX: 329180) has announced a recently signed preliminary basic design agreement with Hyundai Engineering & Construction (Hyundai E&C, KRX: 000720) for a subsea underground carbon dioxide (CO2) storage platform.
Through this collaborative project, the Donghae gas field, which ceased production at the end of 2021, is being revitalized as the country’s largest carbon capture and storage (CCS) facility.
The Donghae Gas Field Utilization CCS Project is a joint initiative led by the Korea National Oil Corporation (KNOC) and Hyundai E&C as part of South Korea’s broader decarbonization strategy.
The immediate target is to capture and store 1.2 million tons of CO2 emissions from domestic industrial complexes.
The Donghae gas field, located in the East Sea, some 40 miles offshore from the South Korean city of Ulsan, played a significant role in the country’s energy exports following its construction in 2004.
Having previously contributed to its development 20 years ago, HHI is now tasked with designing the offshore platform, while HD Korea Shipbuilding & Offshore Engineering (KSOE) will develop the CO2 injection system.
KSOE and HHI have previously collaborated on a marine CO2 injection platform, which received basic design certifications from Norway-based registrar and classification society DNV and US peer American Bureau of Shipping (ABS) in 2021.
Hyundai also secured design approval from ABS for a floating subsea underground storage offshore platform model with a capacity to store 2 million tons of CO2 per year.
These moves are in line with Hyundai’s strategic vision to expedite the development of innovative systems by harnessing its offshore construction expertise.