GS Caltex said on the 3rd that it signed a "carbon-free steam introduction and supply contract" with Namhae Chemical at GS Tower in Gangnam-gu, Seoul, on the 31st. It comes 10 months after the two sides signed a business agreement in Dec. last year to push the project forward.
Under the deal, GS Caltex will supply sulfur, a byproduct of crude oil refining, to Namhae Chemical, and Namhae Chemical will produce steam using heat energy generated in the process of producing sulfuric acid from that sulfur and supply it to GS Caltex's Yeosu plant.
Until now, GS Caltex has used steam produced by burning liquefied natural gas (LNG·Liquefied Natural Gas) as fuel, but by using the heat energy generated in the process of producing sulfuric acid from sulfur, it can receive steam without carbon emissions. Through this project, GS Caltex expects to reduce carbon emissions by about 70,000 tCO2eq (metric tons of carbon dioxide equivalent) annually compared with steam production based on existing LNG fuel.
While GS Caltex was reviewing a shift to low-carbon energy sources for the Yeosu plant, it identified an opportunity to produce steam without carbon emissions by building a sulfuric acid plant that uses sulfur, a byproduct of crude oil refining, as feedstock, leading to a plan to collaborate by utilizing Namhae Chemical's idle sulfuric acid plant in the Yeosu industrial complex. Aiming for commercial transactions in 2027, the two companies plan to begin early next year the construction of steam pipelines, the retrofit of Namhae Chemical's sulfuric acid plant, and the construction of new sulfuric acid tanks.
Hur Sae-hong, president of GS Caltex, said, "This collaboration is a good example of corporations finding new opportunities for carbon reduction together by connecting each other's strengths," adding, "We look forward to the two companies growing into reliable partners that build a better future for the industry together."