HD Hyundai Oilbank, Korea's First Exporter of Ultra-Low Sulfur Bio Marine Fuel

Published 12 Dec.2024 11:16(KST)

HD Hyundai Oilbank has become the first domestic oil refining company to export ultra-low sulfur bio marine fuel to overseas shipping companies.

HD Hyundai Oilbank announced on the 12th that it recently supplied ultra-low sulfur bio marine fuel to the Taiwanese shipping company Yang Ming. Following the first supply to a domestic shipping company in July, it has also succeeded in the first export to an overseas shipping company.

Bio marine fuel, which is a blend of biodiesel with conventional marine fuel, is gaining attention as an eco-friendly fuel that can replace fossil fuel-based marine fuel in line with the International Maritime Organization (IMO)'s 2050 carbon neutrality goal.

HD Hyundai Oilbank Factory View (Photo by HD Hyundai Oilbank)

Unlike other alternative fuels such as LNG, methanol, and ammonia, bio marine fuel does not require separate modifications to ship engines and fuel supply systems, and can use the existing marine fuel supply infrastructure as is.

According to the "Global Shipping Companies' Future Eco-Friendly Marine Fuel Supply Chain Strategy Survey" published by the Korea Maritime Institute, the bio marine fuel market size is expected to grow from $3.9 billion (approximately 5.584 trillion KRW) in 2024 to $8 billion by 2034, with an average annual growth rate of 7.3%.

The bio marine fuel supplied this time was produced based on ultra-low sulfur heavy fuel oil with a sulfur content of 0.5% or less. It is preferred in the market over bio marine fuel based on high sulfur heavy fuel oil because it does not require separate desulfurization equipment such as scrubbers to meet sulfur oxide emission gas regulations.

HD Hyundai Oilbank stated, "Based on differentiated logistics competitiveness, we plan to expand supply to shipping companies in Japan, Singapore, Europe, and other regions in the future."

Meanwhile, this supply was made possible through a bio marine fuel demonstration project that started in September last year. This project aims to support domestic companies' entry into the global bio marine fuel market by establishing quality standards and performance evaluation criteria for bio marine fuel. It is led by the Ministry of Trade, Industry and Energy and the Korea Petroleum Quality and Distribution Authority, with participation and cooperation from the refining industry, bioenergy industry, and shipping industry.