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Karellen's Lab is a massive laboratory facility located on the Ezekiel, the fishbowl shaped airship of the Gazel Ministry. Karellen spent his time criss-crossing between the Ezekiel and his laboratories in Etrenank. It was on the Ezekiel that Karellen created Kahran Ramsus, an artificial Contact and clone of Emperor Cain and various other artificial genetic nightmares collectively known as Wels.
On Solaris, Karellen has another series of labs used for the same reasons as those on Ezekiel. At the end of the first disc, Fei Fong Wong and his allies find themselves shifted from the Soylent System to another part of Karellen's Lab, where Karellen is holding Elly. They manage to break out, but not easily.
Near the end of the game Karellen has his entire lab transplanted from the Ezekiel to Merkava. Fei and his party has to pass through part of Karellen's ruined laboratory on their way to confront Deus in the game's final dungeon.