Utilizing Korean Technology to Dominate Southeast Asia’s Old Marine Plant Recycling Market

 

MOF to start the Technology Development and Demonstration Project for the Conversion of Use of Indonesia’s Old Offshore Plants

 

 The Ministry of Oceans and Fisheries (MOF; Minister Kang Do-hyung) announced that it would launch a technology development project for old offshore plants in Indonesia on Wednesday, June 4.

 

 Boasting of the largest number of offshore plants among Southeast Asian countries, Indonesia has about 110 offshore plants that are aged (over 20 years old) or have been discontinued and abandoned; hence the need for Korea to preempt the demand for recycling—including dismantling and remodeling—of offshore plants.

 

 MOF plans to ▲develop technology to convert existing old offshore plants into facilities that supply LNG fuel to nearby power plants and conduct related field demonstrations and ▲develop technology to remodel offshore plants for storing carbon dioxide (CO2) in depleted seabed oil and gas fields as part of the project.

 

 The Indonesian Coordinating Ministry for Economic Affairs, Ministry of Energy and Mineral Resources, and Indonesian state-owned oil and natural gas company PT Pertamina will participate to ensure the smooth execution of the project, which will be carried out locally in Indonesia. Korea will manage the overall project execution including engineering and verification, with Indonesia assuming responsibility for providing information on related mines and platforms (offshore plants and auxiliary facilities) as well as cooperating in permits and customs clearance and supplying local materials and manpower.

 

 Moreover, as the offshore plant recycling market is a new area, it is essential to secure local personnel with the relevant technology in advance to ensure smooth entry into the market for Korean companies. Accordingly, MOF plans to execute the Capacity Building Project for the Indonesian Eco-friendly Offshore Plant Service Industry (ODA)* starting this year and train approximately 200 personnel by 2029. Such efforts are expected to ease the difficulties faced by Korean companies in securing local manpower.

 

 * A series of related transportation, installation, operation, and maintenance industries, including recycling such as dismantling and remodeling of dried marine plants.

 

 “We have seen meaningful outcomes in the offshore plant service industry through efforts such as building networks between the governments of both countries and providing close support to companies that are active in the local market. We hope Korean companies will take the lead in the offshore plant recycling market in Southeast Asian countries—which is expected to be valued at approximately KRW 10 trillion—through this technology development and capacity building project that will begin this year,” Minister Kang Do-hyung said.