GS Caltex to source carbon‑free steam from Namhae Chemical
- Agreement signed Oct 31 following a December 2024 MoU, with commercial operations targeted for 2027.
- Namhae Chemical will reactivate an idle sulfuric acid plant to produce steam using sulfur supplied by GS Caltex as feedstock.
- The carbon-free steam will replace LNG-based steam at GS Caltex’s Yeosu Complex.
- Estimated annual emissions reduction is about 70,000 tCO₂eq compared with conventional LNG steam production.
Deal and timeline
GS Caltex and Namhae Chemical signed a ‘Carbon‑Free Steam Introduction and Supply Agreement’ on October 31, moving a December 2024 memorandum into a concrete project. Work on steam pipelines, modification of Namhae Chemical’s sulfuric acid plant and new sulfuric acid storage tanks is set to begin early next year, with commercial operations planned for 2027.
Technical approach
GS Caltex will supply sulfur, a byproduct of crude oil refining, to Namhae Chemical as feedstock for sulfuric acid production. The exothermic reaction in the sulfuric acid process will be used to generate steam without CO₂ emissions, which Namhae will supply back to GS Caltex’s Yeosu Complex to replace existing LNG‑based steam.
Expected impact
The companies estimate the switch will cut approximately 70,000 tCO₂eq annually versus conventional LNG‑based steam production. The project repurposes an idle facility and avoids direct CO₂ emissions from steam generation by capturing process heat.
Collaborative model
The initiative originated from GS Caltex’s internal Business Council review of low‑carbon options and is presented as a model of industrial collaboration within the Yeosu Industrial Complex, integrating feedstock supply and steam production across company boundaries.
Source: GS Caltex