South Korea CCU Megaproject: LG Chem and POSCO Holdings to demonstrate carbon capture for e-SAF and syngas

South Korea's Ministry of Science and ICT has launched a CCU Megaproject with LG Chem and POSCO Holdings to demonstrate large-scale carbon capture and utilization technology. The project will capture CO2 from thermal power plants and steelmaking, converting it into sustainable aviation fuel (e-SAF), syngas, and cleaner marine fuels. State funding of 238 billion won (about $180 million) is allocated from 2026 to 2030. The ministry projects that CCU deployment could cut greenhouse gas emissions by over 600,000 tonnes annually by 2035 and reduce reliance on imported aviation fuel by 10% and syngas by 48% by 2050. The CCU R&D budget was increased by 192% this year to 86.4 billion won, partly driven by resource security concerns. The project also includes direct air capture (DAC) and synthetic crude conversion research, with a target of producing 900,000 tonnes of crude oil per year from captured CO2 by 2040.