HD Hyundai Oil Accelerates Bio Business by Securing Raw Material Supply Chain

HD Hyundai Oilbank is securing eco-friendly bio raw materials and accelerating its bio business.

HD Hyundai Oilbank announced on the 31st that it has signed purchase contracts for a total of 80,000 tons of palm fatty acid distillate (PFAD) annually, 40,000 tons each with Korindo Group and LX International. PFAD, a byproduct generated during the production of palm oil, has high acidity and can only be used as a raw material in biodiesel plants.

Joo Young-min, CEO of HD Hyundai Oilbank (left), is taking a commemorative photo with Seung Beom-su, Chairman of the Korindo Group, after signing a PFAD supply contract at the Korindo Group headquarters in Indonesia. (Photo by HD Hyundai Oilbank)

With the commercial operation of a biodiesel plant with an annual capacity of 130,000 tons scheduled for the end of this year, HD Hyundai Oilbank has secured a stable supply chain for bio raw materials through this contract. In addition to PFAD, HD Hyundai Oilbank plans to recycle used and discarded cooking oil as raw materials for the biodiesel plant.

HD Hyundai Oilbank and Korindo Group have agreed to cooperate not only in supplying bio raw materials but also in utilizing biomass such as wood pellets, a byproduct of wood processing, and carbon reduction measures through forest creation projects.

Joo Young-min, CEO of HD Hyundai Oilbank, said, "Since the business areas of the two companies are different, various synergies are expected," and added, "We will actively seek joint business opportunities."

Seung Beom-su, Chairman of Korindo Group, said, "We want to expand cooperation between the two companies beyond PFAD supply to various fields." Korindo Group, established in 1969, is a leading Indonesian Korean business with diverse business areas including paper manufacturing, forest creation, palm trading, and logistics.

HD Hyundai Oilbank also signed a PFAD purchase contract with LX International. LX International entered the Indonesian palm plantation business in 2009 and currently owns a 24,000-hectare plantation in Indonesia and operates a local palm oil distribution business.

An official from HD Hyundai Oilbank said, "Following the biodiesel plant, we are planning to build a hydrotreating biodiesel plant and enter overseas biofuel manufacturing businesses," adding, "After 2025, we also plan to complete a bio aviation fuel manufacturing plant with an annual capacity of around 500,000 tons."

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