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Hyundai Oilbank's Biodiesel Plant Commences Operations
Hyundai Oilbank's Biodiesel Plant Commences Operations

Hyundai Oilbank's Biodiesel Plant Commences Operations

  • 19-Apr-2024 11:13 AM
  • Journalist: Jung Hoon

HD Hyundai Oilbank made a significant announcement on Thursday, unveiling the commencement of commercial operations at its newly established biodiesel facility located in Chungnam Province. With an impressive annual production capacity of 130,000 tons, this facility marks a pivotal step in the company's commitment to sustainable energy solutions. Biodiesel, derived from non-petroleum sources such as vegetable oils, holds promise as a key player in efforts to curb carbon emissions.

The adoption of biodiesel aligns with broader initiatives aimed at promoting environmentally friendly alternatives in the energy sector. In South Korea, the commercialization of bio-aviation fuel and bio-marine fuel is already underway, reflecting a proactive approach towards reducing reliance on conventional petroleum-based fuels. Current regulations mandate a 4 percent mandatory blend of biodiesel with diesel fuel, with projections indicating an anticipated increase to 8 percent by the year 2030.

An innovative aspect of HD Hyundai Oilbank's biodiesel plant lies in its utilization of supercritical processing, a pioneering technique being introduced for the first time in South Korea. This advanced process enables the production of biodiesel without the need for catalysts, operating under high temperature and pressure conditions. Unlike traditional methods, supercritical processing offers the flexibility to utilize non-food raw materials with high acidity, such as palm fatty acid distillate, thereby enhancing the sustainability profile of the production process.

To ensure a consistent supply of raw materials for biodiesel production, HD Hyundai Oilbank has forged a partnership with Lotte Wellfood, leveraging resources including waste cooking oil. Additionally, the biodiesel produced by the company will be channeled to support the transportation needs of Lotte Group affiliates, particularly trucks operating within their fleet.

HD Hyundai Oilbank's CEO, Chu Young-min, underscores the strategic significance of the biodiesel plant's operations, emphasizing its role in laying the groundwork for future endeavors in bio-aviation and bio-marine fuel production.

Biodiesel, characterized by its compatibility with existing internal combustion engines without necessitating structural modifications, stands out as a versatile and practical solution for reducing greenhouse gas emissions.

Globally, biodiesel has emerged as a frontrunner among bio-based fuels due to its properties closely resembling those of petroleum-based counterparts. Its successful commercialization underscores its efficacy in addressing environmental concerns while offering a seamless transition within existing infrastructure. As efforts intensify to combat climate change and transition towards renewable energy sources, biodiesel stands poised to play a pivotal role in shaping the future landscape of the energy industry.

Hyundai Oilbank processes 690,000 barrels of oil daily and distributes oil products and services through a network of 2,500 gas stations across the nation. A significant achievement for Hyundai Oilbank is its successful vertical integration in the petrochemical aromatic sector, spanning from crude oil to BTX. As part of its strategic vision, Hyundai Oilbank aims to evolve into a comprehensive energy enterprise by diversifying its business interests into base materials and lubricant base oil.

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