South Korea's Ministry of Science and ICT has launched a public-private mega project to capture carbon dioxide from thermal power plants and steel mills and convert it into aviation fuel and methanol. The CCU (Carbon Capture and Utilization) project involves LG Chem as lead in the power sector and POSCO Holdings in steel, with a total investment of 238 billion won (about $158.6 million) running from 2026 to 2030. The project aims to demonstrate sustainable aviation fuel (e-SAF) production from thermal plant emissions and synthesis gas for marine fuel from steel industry emissions. The Korea Institute of Energy Research is also working on scaling up synthetic crude oil conversion technology, targeting 900,000 tons of crude oil annually by 2040. By 2050, the technology could replace 10% of aviation fuel and 48% of synthesis gas demand if widely adopted. The project supports South Korea's NDC target of reducing emissions by 400-450 million tons by 2035, while also reducing dependence on imported crude oil for fuel and raw materials.
