Summit Carbon Solutions and SK E&S, an energy company affiliated with South Korea’s SK Group, are joining forces to accelerate the carbon capture industry. SK E&S announced on May 10th, it will invest $110 million to acquire a 10% stake in the largest US carbon capture project – the Midwest Carbon Express, led by Summit Carbon Solutions.
SK E&S is a Korean company with a presence in every part of the LNG value chain. It aims to establish a strong position in large and global carbon capture and storage projects.
“CCS is a critical technology that can directly reduce carbon dioxide produced in the process of using different energy sources such as natural gas and biofuels… Starting with this US project, we will aggressively pursue low-carbon energy opportunities globally,” said SK E&S vice president Yu Jeong-joon.
SK E&S also hopes that collaboration with Summit and Continental Resource will expand its biofuel business expertise as the companies possess know-how about various pipeline operations in the petroleum and gas sector.
Summit Carbon Solutions aims to establish the carbon capture and storage industry in the US on a large scale as it targets capturing up to 12 million tons of CO2 per year from 32 corn ethanol plants located across five midwest states.
The emissions captured at each plant will be transported to an underground carbon storage facility about to be built in North Dakota for permanent storage through a pipeline 3,200 kilometers (1,988 miles) long. Construction of the project is expected to begin in the first half of 2023 and commercial operation should start in the second half of 2024.
SK Group is noted for investing in decarbonization technologies like hydrogen. SK E&S investing in carbon capture is a signal the method is starting to move towards a widespread adoption and cover more grounds in the US and internationally.