South Korea’s leading energy company GS Caltex has initiated a collaborative venture with POSCO, the country’s leading steel manufacturers, and H-Line Shipping, Korea’s largest shipping company to spearhead carbon reduction in the shipping industry by adopting Marine Biofuels.
A significant memorandum of understanding (MoU) for the promotion of the marine biofuels was signed at GS Tower in Gangnam-Gu, Seoul. Key officials in attendance included Kim Byung-Joo from GS Caltex, Seo Ji-Won from POSCO and Lee Seon-Haeok from H-Line Shipping.
This MOU is of significant importance as it brings together three key components of the global maritime logistics value chain: Petroleum company involved in biofuel supply, Steel manufacturer responsible for raw material transport, and the shipping company that operate vessels. Their collective goal is to actively enhance cooperation in the supply and utilization of marine biofuels, with initial trials scheduled to begin on POSCO’s raw material vessels (bulk carriers) in early October.
GS Caltex’s marine biofuel holds the prestigious ISCC EU eco-friendly certification and is poised to play a pivotal role in helping POSCO, attain its carbon neutrality goals while addressing H-Line Shipping’s carbon regulations. GS Caltex will ensure a smooth supply of biofuels, fortify production infrastructure, and contribute to POSCO’s ambition to achieve carbon neutrality by 2020.
Biofuels, derived from renewable raw materials, offers the potential to reduce carbon emissions by more than 65% in comparison to traditional fossil fuel-based marine fuels. When sourced from used cooking oil, it receives international acclaim for achieving an impressive carbon emission reduction of over 80%. Furthermore, its cost-effectiveness and ease of adoption, without the need for extensive infrastructure modifications to existing vessels or the construction of new ones, make it a pragmatic choice for carbon reduction within the shipping industry. The International Maritime Organization (IMO) formally recognized the carbon reduction advantages of marine biofuel during the 7th Marine Environment Protection Committee (MEPC80) conference held in London in July.”
POSCO has been proactive in equipping its bulk carriers with desulfurization facilities to reduce sulfur oxide emissions from vessels exhaust gases since 2018. In 2021, it introduced and operated the world’s first LNG-powered large bulk carrier.
Kim Byung-Joo of GS Caltex, stated, “GS Caltex is at the forefront of biofuel supply in Korea, and we are working on to providing biofuels to both domestic and international shipping companies to assist them in reducing their carbon emissions.”
“It holds significance that we have taken a proactive step for conducting a trial bunker operation of marine biofuels,” remarked Lee Seon-Haeok of H-Line Shipping.
Source GS Caltex