S-Oil (CEO Anwar Al Hijazi) is expanding the supply of carbon dioxide (CO2) as a raw material for manufacturing carbon dioxide, contributing to the stabilization of domestic carbonate supply.

S-OIL announced on the 13th that it will supply by-product gas used as a raw material for carbon dioxide production to Dongkwang Chemical (CEO Choi Nam-ho), an industrial gas manufacturer, starting in the middle of this month, doubling the amount from the previous amount to 200,000 tons per year.

As part of the CCU (Carbon Capture & Utilization) business that captures carbon dioxide and utilizes it as a product, S-Oil and Dongkwang Chemical have been collaborating on a liquefied carbon dioxide business of 100,000 tons per year since 2016.

S-Oil supplies by-product gas containing a large amount of carbon dioxide emitted from the hydrogen production process of the Ulsan plant through a pipeline, and Dongkwang Chemical refines the carbon dioxide from the by-product gas to produce liquefied carbon dioxide and dry ice for industrial and food use.

Carbon dioxide (CO2) is an industrial gas used across a wide range of industries, including shipbuilding (welding), semiconductors (special gas for cleaning), distribution (dry ice), and agriculture (plant growth promoter). It is manufactured using by-product gases generated at oil refineries and petrochemical companies as raw materials. The carbon dioxide demand industry is facing difficulties as the supply source and quantity of raw carbon dioxide is limited and the supply volume of carbon dioxide is becoming increasingly volatile depending on the operating rate of oil refineries and petrochemical facilities.

In particular, as the demand for dry ice has increased due to the recent expansion of the fresh food delivery business and the supply chain has become unstable due to the increased demand for carbon dioxide for welding by shipbuilders, the industry has been requesting the government to come up with measures to secure carbon dioxide supply and demand, so they welcome the increase in supply by S-Oil.