[Edaily Reporter Kim Hyun-ah ] A large-scale Carbon Capture and Utilization (CCU) demonstration project—which captures carbon dioxide (CO₂) and converts it into jet fuel, marine fuel, and chemical feedstocks—is set to begin in earnest. This “carbon resource utilization” project aims to reduce greenhouse gas emissions while simultaneously lowering dependence on crude oil imports to strengthen energy security.

The Ministry of Science and ICT announced on the 24th that it held a kickoff meeting for the “CCU Mega Project”—a large-scale public-private partnership demonstration project—at the Korea Institute of Energy Research in Daejeon, in collaboration with LGCHEM,LTD(051910), #POSCO Holdings, and others.

CCU (Carbon Capture Utilization) is a technology that captures carbon dioxide emitted from industrial sites and converts it into useful resources such as fuel or chemical products.

This project is a large-scale demonstration initiative that captures CO₂ emitted from high-greenhouse-gas-emitting industries, such as power generation and steel, and links it to the production of high-value-added products, including sustainable aviation fuel (SAF), methanol, synthetic gas, and eco-friendly marine fuels. A total of 2380억 won in government funding will be invested from 2026 to 2030.

In the power generation sector, LGCHEM,LTD will serve as the lead agency to demonstrate technology for producing sustainable aviation fuel (e-SAF) using greenhouse gases emitted from thermal power plants. In the steel sector, POSCO Holdings will lead efforts to validate technologies for producing synthetic gas and eco-friendly marine fuel using greenhouse gases generated during the steelmaking process.

The government expects that if this project is successfully scaled up, it will be able to replace some of the fuel and raw materials that have traditionally relied on crude oil. Based on technology diffusion scenarios, it is projected that by 2050, the project could replace 10% of aviation fuel demand and 48% of synthetic gas demand.

Prior to the kick-off meeting, the Ministry of Science and ICT also reviewed the development status of DAC (Direct Air Capture) technology—which is gaining attention as a next-generation carbon capture technology—and the technology for converting captured CO₂ into crude oil.

DAC is a technology that directly captures carbon dioxide, which exists in the atmosphere at a low concentration of approximately 400 ppm. The technology for converting captured CO₂ into synthetic crude oil involves reacting the captured carbon with hydrogen to produce crude oil; if large-scale commercialization is achieved in the future, it is projected that the capacity to produce 900,000 metric tons of synthetic crude oil annually will be secured by 2040.

The government views CCU as a core technology for achieving the 2035 Nationally Determined Contribution (NDC) and is expanding its support. The budget for related research, development, and demonstration projects has increased by approximately 192%, from 29.6 billion won last year to 86.4 billion won this year.

Furthermore, the government is working to foster an industrial ecosystem by operating the “CCU Initiative”—a business-led consortium of industry, academia, and research institutes—and establishing technology and product certification systems as well as a system for recognizing specialized companies.

In particular, as the importance of energy security has grown due to recent instability in the Middle East, the budget for this year’s CCU mega-projects has been increased by 22.4 billion won, rising from 20 billion won in the original budget to 42.4 billion won.

An official from the Ministry of Science and ICT stated, “CCU is a strategic technology that can simultaneously achieve greenhouse gas reduction and secure resources,” adding, “We will actively support its establishment in the industrial sector by expanding technology development and demonstration investments based on public-private cooperation.”