S-OIL joins Korea Blue Energy to boost eco-friendly production
Leading South Korean oil company, S-OIL, has inked a memorandum of understanding (MoU) on October 30 with Korea Blue Energy Ulsan, a prominent circular resource recycling firm. This strategic collaboration, announced at S-OIL’s headquarters in Seoul, aims to propel the green circular economy movement forward.
The partnership’s main objective is to transform waste plastics, which have predominantly been discarded in landfills or incinerated, into sustainable chemical products. Korea Blue Energy Ulsan is set to provide S-OIL with pyrolysis oil – derived from waste plastic subjected to high temperatures. S-OIL, in turn, intends to blend this pyrolysis oil with crude oil in its existing refineries and chemical facilities. The end result? The production of environmentally-friendly naphtha and polypropylene.
What’s noteworthy is that S-OIL can now manufacture products and intermediary raw materials that match the quality of current petrochemical items but boast a reduced carbon footprint, reinforcing their commitment to low-carbon environmental, social and governance (ESG) management.
To lay the groundwork for this initiative, S-OIL garnered a regulatory sandbox endorsement from the Ministry of Trade, Industry and Energy earlier in July. This move was vital as, under prevailing regulations, it’s not permissible to process alternative inputs categorised as waste in existing petroleum refining setups. Moreover, navigating the maze of intricate licensing can be time-consuming. To circumvent these challenges, S-OIL pursued a temporary regulatory special exception, streamlining or waiving certain mandates. By next year, they’re on track to acquire the International Sustainability and Carbon Certification (ISCC PLUS) label, a globally recognised green product certification.
A representative from S-OIL shared the company’s vision, stating, “We’re dedicated to championing sustainable and circular new energy and chemical ventures to become the most competitive and innovative energy and chemical enterprise.” Emphasising the need to decrease reliance on finite resources and mitigate environmental harm, they added, “We’re wholeheartedly committed to the circular economy and its transformative potential.”