GS Caltex subsidiary to expand biodiesel plant capacity
GS Bio Co., a subsidiary of GS Caltex, plans to expand the production capacity of its biodiesel plant in Yeosu, South Jeolla Province, in South Korea. GS Bio built the facility in 2011 with an investment of KRW40 billion (USD30 million).
The company plans to expand the facility by the end of 2024 with an investment of KRW39 billion (USD29.1 million), according to Pulse News.
In related news, HMM, formerly Hyundai Merchant Marine, has signed a memorandum of understanding (MoU) with GS Caltex to secure marine biofuels. HMM also plans to conduct the trial use of these fuels on its three 24,000 TEU containerships in the second half of this year.
The marine biofuels that will be used in the trial is comprised of 30% biodiesel derived from used cooking oil blended with 70% high-sulfur fuel oil (HSFO).
Biodiesel reduces greenhouse gas emissions by 80% compared to conventional fuels. Biofuels have the merit of being compatible with current ship engines without technological modification.
In October 2022, South Korea’s Ministry of Trade, Industry and Energy, outlined five “Eco-Friendly Biofuel Development Measures,” which includes raising the biodiesel blend from 5% to 8% by 2030.
In 2021, HMM performed the first test voyage using biofuels on its 13,100 TEU containership. The vessel HMM Dream, deployed in East Coast 1 service, connecting Asia and the U.S. East Coast, successfully completed the voyage in the Pacific Ocean.
“Based on this MoU, we expect to generate less greenhouse gas emissions and thereby contribute to limiting climate change. We will continue to enhance our environmental competence by accelerating R&D activities,” said Park Jinki, senior executive vice president of HMM.