Ulsan Port Authority Reborn as an Eco-Friendly Energy Hub

Ulsan Port is transforming into an eco-friendly energy hub. While it has focused on handling petroleum-based liquid cargo accounting for 80% of its annual cargo volume, it is now strengthening infrastructure for the storage and supply of eco-friendly fuels such as liquefied natural gas (LNG), methanol, and hydrogen.

According to Ulsan Port Authority on the 26th, the authority is currently promoting the 'LNG Bunkering Project' at Ulsan Port as one of its new businesses. This project involves injecting LNG as fuel for ships, with a total project cost of 1.6 trillion KRW being invested to construct the first phase terminal of the Northern New Port Energy Hub and a dedicated LNG bunkering berth. This terminal will handle the one-stop process of LNG import, storage, and supply. Based on this, the authority plans to establish a tripartite joint venture with SK Gas and domestic shipping companies to secure the role of a key LNG bunkering base in the southeastern region.

Recently at Ulsan Port, green methanol, which is gaining attention as the next-generation eco-friendly ship fuel, was supplied to a container ship for the first time in the world. This marks the first step in pioneering a new market for bunkering services. Compared to conventional fuels, methanol reduces sulfur oxides by 100%, nitrogen oxides by 80%, and carbon dioxide emissions by up to 95% depending on the production process. The Danish 'A.P. Moller Maersk' Group’s ship, which received the world’s first green methanol fuel supply, is a 2100 TEU-class (1 TEU = one 20-foot container) container ship ordered from Hyundai Mipo Dockyard. It is the first of 19 methanol-powered container ships commissioned by the Maersk Group from domestic shipyards.

This achievement was made possible through active support from the Ministry of Oceans and Fisheries, including the 'Eco-friendly Ship Fuel Demonstration Project in Ports,' to revitalize the domestic eco-friendly ship fuel industry. Additionally, the authority has carried out administrative procedures and safety accident prevention measures in cooperation with shipping companies, shipbuilders, tank terminals, and eco-friendly ship fuel manufacturers to supply eco-friendly fuels. Previously, the ship was also supplied with 1,250 tons of biodiesel at Pier 8 of Ulsan Main Port. The authority stated, "This is significant as it supplied ship fuel using recycled resources equivalent to 900,000 used cooking oil containers (based on 1.8L per household container)."

A view of biodiesel bunkering at Ulsan Port Pier 8

Proactive Establishment of a Carbon-Free Hydrogen Hub

The authority is currently focusing on building a hydrogen base at Ulsan Northern New Port to import and supply green hydrogen (ammonia) produced overseas. This expands eco-friendly fuels beyond bridge fuels like LNG and methanol to include hydrogen. Originally, this area was planned as the site for the 'Northeast Asia Oil Hub' project included in the 100 National Tasks during the Park Geun-hye administration, intended for handling liquid and chemical products. However, to prepare for future hydrogen import volumes, the authority has designated three berths at Ulsan Northern New Port as a hydrogen cluster and is developing the area accordingly.

The authority has named this the 'Ulsan Port Green Hydrogen (Ammonia) Logistics Hub Development Project' and plans to establish an import value chain for overseas green hydrogen to solidify its position as a clean hydrogen and ammonia import hub port. Since early 2021, the authority has invested 85 billion KRW to first build one 50,000-ton berth and is constructing related storage facilities. Completion is scheduled for the end of this year. The hinterland land reclamation will be completed by 2027, and the hydrogen terminal is planned to be finished before 2030. Due to high demand for eco-friendly energy from power generation companies, refineries, and smelting companies in the Ulsan Port hinterland, the project is considered highly viable.

Ulsan Port Systematically Manages Safety Incidents through Quantification

The authority is preventing accidents at Ulsan Port by calculating handling safety indices. Since March, through active demonstrations with stevedores and working groups, the authority has been digitizing handling safety indices by berth operators and analyzing reliability by comparing industrial accident reduction performance and changes in handling safety index rating trends. Through this data analysis, the risk level of cargo handled at the berth and the number of industrial accidents relative to cargo volume are reflected in the handling safety index, allowing immediate confirmation of the berth’s safety rating. The authority plans to apply the Ulsan Port handling safety index to all domestic ports and expand it to a nationwide trade port handling safety index by 2025.

Kim Jae-gyun, President of Ulsan Port Authority, said, "We will strive to firmly establish Ulsan Port as the largest eco-friendly energy hub port in Northeast Asia and become a global port leading eco-friendly energy that captures the two goals of safety and sustainability."

This content was produced with the assistance of AI translation services.