SK Energy, POSCO team up to develop clean coal technologies

By Lee Joon-seung
SEOUL, July 24 (Yonhap) -- South Korea's top refiner SK Energy Co. and leading
steelmaker POSCO agreed Friday to join forces in developing clean coal
technologies and cutting the country's dependence on oil, government officials
said.

The two companies signed a deal on creating the knowhow to make synthetic natural
gas (SNG), manufacture coal-based oil through a coal-to-liquid process and
extract various materials needed to make chemical products, the Ministry of
Knowledge Economy said.
The technologies could make it possible to turn low-quality coal into a clean
energy source, helping South Korea enter the global energy market in the future,
it said.
According to the ministry, the government will provide 25 billion won (US$20
million) in funding for research and development, with SK Energy and POSCO
planning to spend several trillion won more on manufacturing infrastructure,
POSCO will invest 1 trillion won until 2013 to build a SNG plant that can produce
500,000 tons of gas every year.
SK Energy will spend 550 billion won through 2013 to produce 200,000 tons of
various coal-based industrial chemicals, while allocating a further 1.8 trillion
won from 2014-2018 to produce 6.3 million barrels of artificial crude oil.
The ministry said that clean coal technology could enhance the country's energy
security and advance environmental protection, which is becoming increasingly
important as countries around the world strive to cut back on greenhouse gas
emissions.
yonngong@yna.co.kr
(END)