HD Hyundai Oil Bank became the first Korean refiner to export ultra-low sulfur bio marine oil to overseas shipping lines.

HD Hyundai Oil Bank recently announced that it has supplied ultra-low sulfur bio marine fuel to Taiwanese shipping company Yang Ming Marine Transport Corporation. Following the supply of ultra-low sulfur bio marine oil to a domestic shipping company for the first time in July, Hyundai Oil Bank has succeeded in exporting its first bio marine oil to an overseas shipping company, thus accelerating its efforts to preempt the relevant market.

Bio-bunker fuel, which is biodiesel blended with conventional marine oil, is gaining traction as one of the green fuels that will replace conventional fossil fuel-based marine oil in line with the International Maritime Organization’s (IMO) 2050 “carbon neutral” goal.

Unlike other alternative fuels such as LNG, methanol, and ammonia, bio marine fuel does not require any modifications to ship engines and fueling systems and can be utilized with existing marine oil supply infrastructure.

The bio marine fuel market is expected to reach $8 billion by 2034, up from $3.9 billion in 2024, growing at a CAGR of 7.3%, according to a study by the Korea Maritime and Fisheries Development Institute, “Global Shipping Companies’ Strategies to Secure Future Eco-Friendly Marine Fuel Supply Chain.

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

“Unlike our competitors, HD Hyundai Oil Bank operates multiple logistics bases in Pyeongtaek and Ulsan,” said an official from HD Hyundai Oil Bank.” Based on our differentiated logistics competitiveness, we plan to expand our supply to shipping companies in Japan, Singapore, and Europe.”

Meanwhile, the supply was made possible through the Bio-Boating Oil Demonstration Project, which was launched in September last year. The project is organized by the Ministry of Trade, Industry and Energy and the Korea National Petroleum Administration, with the participation of the oil refining industry, bioenergy industry, shipping industry, and others, to establish quality standards and performance evaluation criteria for biofuel to help domestic companies enter the global biofuel market.
Source: The Korea Post