NEWS

▶ First domestic supply and export of ultra-low sulfur bio-marine fuel to overseas shipping companies
▶ Bio-marine fuel market expected to grow to $8 billion by 2034 due to carbon emission regulations
▶ "Leveraging differentiated logistics competitiveness, we plan to expand supply to shipping companies in Japan, Singapore, and Europe."

HD Hyundai Oilbank has become the first South Korean refinery to export ultra-low sulfur bio-marine fuel to overseas shipping companies.

On Thursday, the company announced that it recently supplied ultra-low sulfur bio-marine fuel to the Taiwanese shipping company Yang Ming Marine Transport Corporation. Following its first domestic supply of this fuel to a South Korean shipping company in July, HD Hyundai Oilbank has now successfully completed its first overseas export, accelerating its efforts to dominate the market.

Bio-marine fuel, a blend of conventional marine fuel and biodiesel, is gaining attention as one of the eco-friendly alternatives to fossil fuel-based marine fuels in line with the International Maritime Organization (IMO)’s goal of achieving carbon neutrality by 2050.

Unlike other alternative fuels such as LNG, methanol, and ammonia, bio-marine fuel does not require modifications to ship engines or fuel supply systems. It also has the advantage of utilizing existing marine fuel supply infrastructure without additional investment.

According to the Korea Maritime Institute's report, “A Study on Global Shipping Companies’ Strategies for Securing Future Eco-Friendly Marine Fuel Supply Chains,” the bio-marine fuel market is projected to grow from $3.9 billion in 2024 to $8 billion by 2034, with an average annual growth rate of 7.3%.

The recently supplied bio-marine fuel was produced using ultra-low sulfur fuel oil (ULSFO) with a sulfur content of 0.5% or less. Therefore, there is no need to install additional desulfurization equipment, such as scrubbers, on ships to comply with sulfur oxide (SOx) emissions regulations. This makes it more preferred in the market compared to high-sulfur fuel oil (HSFO)-based bio-marine fuels.

A representative from HD Hyundai Oilbank stated, “Unlike our competitors, HD Hyundai Oilbank operates multiple logistics hubs in Pyeongtaek and Ulsan. Leveraging our differentiated logistics capabilities, we plan to expand supply to shipping companies in Japan, Singapore, and Europe.”

Meanwhile, this supply was made possible through the bio-marine fuel demonstration project launched in September last year. The project aims to establish quality and performance evaluation standards for bio-marine fuel to support domestic companies in entering the global market. It is led by the Ministry of Trade, Industry and Energy and the Korea Petroleum Quality & Distribution Authority, with cooperation from the refining, bioenergy, and shipping industries.