ISU CHEMICAL, Reduction project making the best use of regional characteristics and external resources

[ Summary ]

As ETS started in 2015 in Korea, the entities reviewed many compliance strategies both in terms of reduction projects and of emission trading. Reduction projects mostly are concentrated on ‘fuel switching’, ‘replacements’, and ‘improving efficiency’. Isu Chemical, on the other hand, changed the way of thinking grasping other companies’ manufacturing trend and utilized it to reduce GHG from onsite facility by 55,000 tCO2e/yr. Along with this exemplary reduction project, Isu Chemical has improved its energy intensity by 6% every year since 2015.

[ Emissions ]

Period  Year Emissions (tCO2e) Production (MT) Intensity (tCO2e/MT)
1st Phase 2015 301,815 494,248 0.6107
2016 268,966 505,935 0.5316
2017 264,310 511,860 0.5164


[ Key Success ]

· Reduction technology : Reducing GHG by replacing onsite facility with other companies’ by-product gas(hydrogen)

· Recognition : 2018 Energy Champion Certificate by Korea Energy Agency

· External Effect : Benefitted by-product gas(hydrogen) manufacturing companies



[ Main Activities ]

Isu Chemical has process emissions from chemical manufacturing and stationary combustion of fuels. The petrochemical sector received a higher reduction rate than other sectors in the 1st phase and Isu Chemical figured out that they needed to reduce by about 55,000 tCO2e/yr to comply with ETS. The company already made efforts to reduce emissions by Government-run programs(ISO50001, Information sharing on energy saving technology), a variety of management systems(SAP ERP system, manufacturing monitoring system, electricity peak control), and many reduction projects(energy consulting, internal reward program, installation replacement). Therefore, Isu Chemical had to change the way of thinking to succeed with the new challenge. The company used naphtha to manufacture hydrogen combusting a lot of natural gas and emitting GHGs. They found out that there are many companies in the region that have increased production with hydrogen as by-product gas. Isu Chemical figured out that it could be mutually beneficial to purchase by-product hydrogen from these companies. They signed agreements and invested in constructing about 20 km of pipeline to supply the hydrogen.

Company  Before  After Effect
Purchaser (Isu Chemical) Operating hydrogen manufacturing facility Stopped operating the onsite facility GHG reduction
Seller (H2 Supplier) By product sale Financial benefit


[ Recognition and Future Plans ]

The project developer recalls challenges in the beginning to persuade internal and external stakeholders. The internal production team was worried about quality control risk and external hydrogen suppliers worried about high construction costs. It took one and a half years to convince the stakeholders, and finally sign contracts with three companies.  As a result, Isu Chemical achieved about 55,000 tCO2e/yr of GHG reduction, cost saving from purchasing naphtha and natural gas, and decrease in production risk. Isu Chemical is continuing to find more ways to collaborate with other companies to reduce emissions and co-benefit from the projects.