South Korea's $174M Carbon Capture Project Turns CO₂ into Fuel by 2030
South Korea's $174M Carbon Capture Project Turns CO₂ into Fuel by 2030
South Korea's $174M Carbon Capture Project Turns CO₂ into Fuel by 2030
South Korea is launching a major national carbon capture and utilisation project. The CCU Mega Project will run from 2026 to 2030 and has secured significant state funding. It aims to turn industrial CO2 into useful fuels and chemicals. The initiative will receive 238 billion won (around $174 million) in government support. A recent supplementary allocation added another 22.4 billion won to the budget.
The project focuses on converting CO2 from industries like steel and power generation. POSCO Holdings will lead the steel sector track, using CO2 from steelmaking to produce synthetic fuels and chemicals. LG Chem will head the power generation track, demonstrating sustainable aviation fuel production using CO2 from thermal plants.
Direct air capture technology was also showcased, pulling CO2 straight from the atmosphere. The Ministry of Science and ICT has been preparing the groundwork for a wider CCU market, including a certification system for technologies and products. By 2030, the project could establish a domestic supply chain for low-carbon fuels and industrial materials. The government estimates CCU might replace 10% of jet fuel and 48% of synthetic gas by 2050. The expanded budget reflects growing commitment to this long-term goal.