Hyundai Oilbank Challenges 'Green Growth' with Carbon Productization Technology

Sustained Carbon Emission Reduction to 70% of Current Levels by 2050

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Oilbank announced on the 23rd that it will declare 'Carbon Neutral Green Growth' to establish a sustainable growth foundation in line with strengthening global environmental regulations.

According to the new growth strategy, Hyundai Oilbank plans to gradually reduce carbon emissions to about 70% of last year's level by 2050. Carbon emissions, which reached 6.78 million tons last year, are expected to decrease to 4.99 million tons by 2050. The target reduction of 1.79 million tons is equivalent to the amount purified by planting 12.7 million pine trees.

In this process, the company will enter related new businesses to secure future growth engines. 'Carbon neutral growth' means carrying out reduction activities equivalent to the increase in carbon emissions due to business growth, making the net increase rate of carbon emissions zero.

Among domestic refining and petrochemical companies, Hyundai Oilbank is the only one to announce an eco-friendly growth strategy that significantly reduces future carbon emissions compared to current levels, instead of the typical 'carbon neutral growth.'

A significant portion of the goal will be achieved through entry into related new businesses. Hyundai Oilbank is developing technology to convert carbon dioxide generated during plant operations into calcium carbonate and methanol through joint research with domestic research institutes and partner companies.

Calcium carbonate is used as a raw material for construction materials such as cement, as well as paper, plastic, and glass, while methanol is used to produce next-generation eco-friendly fuels, plastics, rubber, and various industrial equipment. Hyundai Oilbank plans to sequentially commercialize these technologies starting in the second half of 2021.

The expected reduction through this is about 540,000 tons annually. From 2030, when commercialization is completed, an improvement effect of over 100 billion KRW in operating profit per year is also expected.

Plant operations will also be converted to eco-friendly methods. Hyundai Oilbank will replace the three heavy oil boilers currently owned with LNG boilers by 2024.

Electricity supplied externally from KEPCO and others will be fully replaced with new renewable energy sources by 2050, reducing a total of 1.08 million tons of carbon emissions annually. Existing processes will be optimized to minimize carbon emissions, and investments will be made in overseas greenhouse gas reduction projects to secure additional emission rights.

A Hyundai Oilbank official said, "The increase in carbon emissions due to new plant construction will be offset by investments in next-generation eco-friendly energy sectors," adding, "the strategy is to transform into an eco-friendly company by increasing the proportion of related businesses, such as supplying eco-friendly energy sources through existing gas station platforms."