HD Hyundai is accelerating its efforts to develop new business opportunities using its offshore expertise to develop a platform for South Korea's largest Carbon Capture and Storage (CCS) project. The shipbuilding division notes that it participated in the construction of the offshore gas field 20 years ago and now will again play a key role in the repurposing of the field for its new role.
The shipbuilder HD Hyundai Heavy Industries recently signed a preliminary basic design contract with Hyundai Engineering & Construction for a carbon dioxide (CO2) subsea underground storage platform. In this project, HD Hyundai Heavy Industries is responsible for the design of the offshore platform, while HD Korea Shipbuilding & Marine Engineering will develop the CO2 injection system. It is the latest in a series of steps taken by Hyundai to develop this new line for its business.
The project is part of the effort to repurpose the Donghae Gas Field for which HD Hyundai Heavy Industries manufactured a production platform in 2004. Located nearly 40 miles offshore from Ulsan, the field went into production in 2004 and helped to create the country’s energy export business. It ceased production at the end of 2021 and will be reborn as Korea's largest CO2 storage site.
The Donghae Gas Field Utilization CCS Project is being led by the Korea National Oil Corporation and Hyundai Engineering & Construction as part of the country’s decarbonization strategy. The initial goal is to capture and store 1.2 million tons of CO2 from Korea’s domestic industrial complexes
HD Korea Shipbuilding & Marine Engineering and HD Hyundai Heavy Industries previously jointly developed a marine CO2 injection platform working with the Korea National Oil Corporation. In 2021, the platform obtained basic design certification both from DNV and the American Bureau of Shipping. Hyundai also recently obtained design approval from ABS for a two million tons per year floating CO2 subsea underground storage offshore platform model. It is part of the company’s strategy to accelerate the development of new systems that leverage its expertise in offshore construction.