GS Caltex, South Korea’s second-largest refiner, plans to build a KRW 50 billion (USD 44 million) plant to produce biobutanol later this year, South Korea’s presidential office said. Biobutanol is an alternative, renewable fuel produced from biomass such as sugar, starch, straw or wood.
The announcement, which was made as South Korea’s President Park Geun-hye toured a new innovation center in the country’s southwestern area, is in line with South Korea’s efforts to reduce greenhouse gas emissions.
GS Caltex received government funding for its 30,000 liter-per-year pilot plant at the company’s R&D center in Daejeon-city.
“Our country is in a position to support the international community’s efforts to reduce greenhouse gases and explore and lead environmentally friendly business models,” Park said at the opening ceremony of the latest innovation center in Yeosu, South Jeolla Province, the 12th of its kind in South Korea.
Park said the innovation center will support the creation of the ecosystem for an environmentally friendly biochemical industry.
South Korea has been pushing to set up such centers across the country to match up local start-ups and venture firms with conglomerates, which can provide resources to smaller companies so that they can turn creative ideas into real businesses.