Allowing 'Eco-friendly Refining Materials' Such as Biomass in Petroleum Refining

"Petroleum and Petroleum Alternative Fuel Business Act"
Amendment Passed by the National Assembly

From now on, the input of eco-friendly refining raw materials such as biomass will be allowed in the petroleum refining process.

The Ministry of Trade, Industry and Energy announced that the amendment to the "Petroleum and Petroleum Alternative Fuel Business Act," which includes this content, passed the National Assembly plenary session on the 9th.

The amendment to the Petroleum Business Act was promoted to expand the production and use of eco-friendly petroleum alternative fuels as a key means to achieve carbon neutrality amid strengthening global environmental regulations.

Plenary session held at the National Assembly on the 9th. Photo by Hyunmin Kim kimhyun81@

The main content of the amendment to the Petroleum Business Act, which specifies policy goals for activating eco-friendly fuels, is to allow the input of "eco-friendly refining raw materials" in the petroleum refining process. The Ministry of Trade, Industry and Energy plans to specify concrete eco-friendly raw materials such as pyrolysis oil from waste plastics, waste lubricants, and biomass in the enforcement rules.

In addition, the amendment changed the definition of "petroleum alternative fuel." Until now, it included all fuels that replace petroleum regardless of eco-friendliness, but from now on, fossil fuel-based petroleum alternative fuels and eco-friendly fuels such as biofuels and renewable synthetic fuels will be distinguished.

Along with this, the amendment newly establishes regulations to strengthen the competitiveness of the domestic industry, such as expanding the development, use, and distribution of eco-friendly fuels and supporting raw material procurement. It also specifies the establishment and operation of a dedicated institution (Petroleum Alternative Fuel Center) to efficiently carry out support projects related to eco-friendly fuels. To ensure quality and prevent safety accidents, it includes regulations requiring reporting the usage plan and details to the Minister of Trade, Industry and Energy when inputting eco-friendly refining raw materials, and prohibiting the use of substances other than petroleum or eco-friendly refining raw materials as raw materials for petroleum product manufacturing.

An official from the Ministry of Trade, Industry and Energy said, "Through this amendment, the government will establish a strong support system to preoccupy the global eco-friendly fuel market with high growth potential in the future, and based on stable supply chain construction and demand expansion, it will also advance the eco-friendly fuel industry ecosystem. In addition, since the legal and institutional uncertainties that the refining industry had raised have been resolved, bold private investment in eco-friendly transition is expected to begin in earnest."

The amendment to the Petroleum Business Act will be promulgated after government transmission and Cabinet resolution, and will be fully enforced six months after promulgation. The Ministry of Trade, Industry and Energy plans to closely consult with the industry and experts to prepare subordinate statutes without delay in line with the enforcement of the law, and together with related ministries, prepare various incentives to activate eco-friendly fuels.

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