KOSPI-listed Tongyang(001520) said on the 16th it will link carbon removal credits as it expands its CarbonCure ready-mixed concrete business.
CarbonCure ready-mixed concrete is a product that applies the carbon mineralization technology of Canada-based eco-friendly concrete company CarbonCure. Tongyang introduced the technology early and completed the construction of production facilities to actively respond to the global trend of tighter carbon-neutral regulations.
CarbonCure injects liquefied carbon dioxide during the ready-mix production process and stores it permanently inside the concrete. It uses the principle in which the injected carbon dioxide reacts with cement and mineralizes into calcium carbonate. When this technology is applied, concrete strength increases 5% to 10% and cement use falls 3% to 5%. It is a representative eco-friendly ready-mix concrete technology that can cut costs while also removing carbon.
Tongyang's cumulative production of CarbonCure ready-mixed concrete totals 55,000 ㎥, including 39,000 ㎥ at the Gimpo plant and 16,000 ㎥ at the Incheon plant. The products are supplied to major construction sites in Gyeonggi and Incheon. Targeting the growing demand for eco-friendly ready-mix, the company also plans to continue strengthening sales capabilities and expanding production capacity.
Along with targeting the eco-friendly market, it will actively expand into the carbon credit business. Based on carbon removal achieved during production, CarbonCure can issue and transact carbon credits.
Carbon removal credits issued through CarbonCure production are dozens of times more expensive than general reduction-type carbon credits in transactions. In particular, top-tier carbon removal credits using direct air capture (DAC) methods like CarbonCure are sometimes traded at more than $1,000 per ton.
A Tongyang official said, "With growing customer interest in eco-friendly products, on-site application and production volumes of CarbonCure concrete are steadily increasing," adding, "We were able to secure a lead in the market by introducing the technology early and building production facilities."
The official added, "By linking to the carbon removal credit business, which has high economic value, we can also generate additional revenue," and emphasized, "As the global carbon-neutral regulations are expected to tighten, expanding the related market, we plan to push for commercialization aggressively."