GS Cal·POSCO·H Line Shipping Promote Introduction of Biofuel Ships

GS Caltex, POSCO, and H Line Shipping, the largest domestic dedicated shipping company, are promoting a bio marine fuel business.

On the 5th, the three companies signed a memorandum of understanding (MOU) to jointly promote the bio marine fuel business at GS Tower in Gangnam-gu, Seoul. The oil refinery supplying biofuel, the shipping company operating the vessels, and the steel company transporting raw materials are working together to reduce carbon emissions in the global maritime logistics value chain.

GS Caltex, POSCO, and H Line Shipping signed a business agreement on the 5th to jointly promote the bio-ship fuel project aimed at reducing carbon emissions in shipping. Seo Ji-won, Head of Raw Materials Division 1 at POSCO (from left), Kim Byung-joo, Head of Business Operations Division at GS Caltex, and Lee Seon-haeng, Head of Management Support Division at H Line Shipping.

They will cooperate in the supply and use of bio marine fuel to reduce carbon emissions in the shipping sector. Within this month, they plan to supply bio marine fuel to POSCO's raw material dedicated bulk carrier for a pilot voyage.

GS Caltex's bio marine fuel is an internationally eco-certified product and is expected to play an important role in achieving POSCO's carbon neutrality goals as the shipper and in responding to carbon regulations for H Line Shipping as the shipping company.

Bio marine fuel made from renewable raw materials can reduce carbon emissions by more than 65% compared to conventional fossil fuel marine fuel. Bio marine fuel using waste cooking oil-based biodiesel has been internationally recognized to reduce carbon emissions by more than 80%.

Additionally, it is cheaper than methanol or ammonia and can be used without new investments or building new ships, making it the most practical alternative for carbon reduction in the shipping sector.

GS Caltex Yeosu Plant Panorama

GS Caltex is participating in the government-launched Eco-friendly Biofuel Activation Alliance established in October last year, playing a leading role in expanding the distribution of biofuels. Last month, it started a pilot flight using sustainable aviation fuel (SAF) on Korean Air cargo flights from Incheon Airport to Los Angeles, and in the marine fuel sector, it conducted its first pilot voyage with HMM on the 15th of last month.

Kim Byung-joo, Head of Business Operations at GS Caltex, stated, "We plan to contribute to reducing carbon emissions for global customers by communicating not only with domestic and international shipping companies but also with shippers."

Lee Seon-haeng, Head of Management Support at H Line Shipping, said, "It is meaningful to take a proactive step by conducting a pilot voyage of bio marine fuel representing domestic dedicated shipping companies," adding, "We plan to provide highly satisfactory transportation services and solutions to existing customers as well as expand global maritime transportation."

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