HMM Signs Agreement for 'Bio-MGO' Demonstration Project to Reduce Ship Greenhouse Gas Emissions

HMM, Hyundai Heavy Industries-Korea Shipbuilding & Offshore Engineering Sign MOU for Demonstration Project

[Asia Economy Reporter Yu Je-hoon] HMM is launching a demonstration project related to the eco-friendly fuel 'bio heavy oil' to reduce greenhouse gas emissions from ships. On the 20th, HMM announced that it signed a memorandum of understanding (MOU) for the demonstration of bio heavy oil use with the Korea Bioenergy Association, Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering, and the Korean Register.

Bio heavy oil is an alternative fuel made from unused resources such as animal and vegetable oils and by-products of biodiesel processes. It has a production capacity of about 2 million tons domestically and is recognized as a carbon-neutral fuel, being supplied as fuel for power generation under the Renewable Portfolio Standard (RPS).

This bio heavy oil has properties similar to conventional marine fuels, and the industry expects that with additional research and development, it will be applicable to ships as well.

In particular, the International Maritime Organization (IMO) mandates reducing greenhouse gas emissions from ships by at least 50% by 2050 compared to 2008 levels. Recently, the European Union (EU) has been pushing legislation to include the shipping sector in the greenhouse gas emissions trading system, making it necessary for the shipping industry to establish strategies for reducing greenhouse gases.

According to the agreement, each organization plans to cooperate on establishing quality standards for bio heavy oil, building fuel supply systems, confirming ship applicability through onshore and onboard tests, and conducting additional research necessary for the commercialization of bio heavy oil.

Specifically, HMM will lead the real-ship verification and sea trials of bio heavy oil blended fuel on a 13,000 TEU container ship currently in operation, while Hyundai Heavy Industries and Korea Shipbuilding & Offshore Engineering will lead onshore tests by providing test engines and establishing test facilities.

Choi Jong-cheol, Executive Director of Maritime Affairs at HMM, said, "HMM established an R&D team last year to continuously pursue greenhouse gas reduction research in response to global environmental regulations and climate change. If the application of bio heavy oil to ships is realized through this verification, it is expected to greatly help reduce greenhouse gas emissions from ships."

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