HD Hyundai Oilbank announced on Thursday that its dedicated biodiesel facility with an annual production capacity of 130,000 tons in Chungnam Provice began commercial operation.

Biodiesel, which is produced from non-petroleum sources such as vegetable oils, could play a part in reducing carbon emissions. The commercialization of bio-aviation fuel and bio-marine fuel is already underway, with current regulations in South Korea mandating a 4 percent mandatory blend of biodiesel with diesel fuel. The mandatory blending ratio is expected to increase to 8 percent by 2030.

HD Hyundai Oilbank is introducing supercritical processing for the first time in South Korea with its biodiesel plant. This process makes it possible to churn out products without catalysts under high temperature and pressure conditions, unlike conventional methods, and non-food raw materials with high acidity such as palm fatty acid distillate can be used for the process.

The raw materials for biodiesel, including waste cooking oil, will be provided in cooperation with Lotte Wellfood. Additionally, the biodiesel produced by HD Hyundai Oilbank will be supplied to trucks operated by Lotte Group affiliates.

“When the plant begins operations, we will have laid the foundation to produce bio-aviation and bio-marine fuels,” HD Hyundai Oilbank CEO Chu Young-min said.

By Kim Hee-soo and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]