GS Caltex and POSCO Inter to Invest 260 Billion KRW in Indonesian Bio-raw Material Plant, Construction to Start Next Year

Joint Venture Signing Ceremony Held on the 12th
Targeting Commercial Operation in Q2 2025
Joint Promotion of Waste Material Collection Business
Establishing Foundation for Biofuel Business Expansion

GS Caltex will invest 260 billion KRW in the construction of a bio-raw material refining facility in Indonesia in partnership with POSCO International.

On the 12th, GS Caltex announced that it held a joint investment signing ceremony for the Indonesian bio-raw material refining project at the POSCO Center in Gangnam-gu, Seoul, attended by key officials including Huh Se-hong, CEO of GS Caltex, and Jeong Tak, CEO of POSCO International.

The two companies will build a bio-raw material refining facility on a 300,000㎡ site in Kalimantan, Indonesia through a joint venture. The facility is expected to produce 500,000 tons of bio-raw materials and edible oils annually. Construction will begin early next year with the goal of commercial operation in the second quarter of 2025. They will also jointly promote a waste raw material recovery business arising from the refining facility and other operations. GS Caltex plans to secure renewable raw materials used in the production of biofuels such as bio-jet fuel and bio-marine fuel through the waste raw material recovery business. The plan is to establish the entire value chain from raw materials to products by laying the foundation for expanding the biofuel business.

Huh Se-hong, President and CEO of GS Caltex [Photo by GS Caltex]

Through this joint project, GS Caltex will secure stable raw material supply to utilize and strengthen its biofuel production technology, while POSCO International will expand its business scale based on its existing bio-raw material infrastructure, thereby enhancing the competitiveness of both companies' bio businesses.

Huh Se-hong, CEO of GS Caltex, said, “This joint project will strengthen our competitiveness in the global bio market,” adding, “We will expand synergies with POSCO International by leveraging GS Caltex’s bio business capabilities.”

GS Caltex is focusing on Green Transformation by reducing environmental impact in its existing businesses and actively pursuing low-carbon new businesses such as the circular economy for waste plastics and hydrogen. After signing a memorandum of understanding with LG Chem in July last year to build a white bio ecosystem, GS Caltex started a demonstration plant, and in June this year, it signed an agreement with French cosmetics company L’Or?al for the development and supply of bio-based cosmetic raw materials. Last month, GS Caltex began pilot operations of bio-jet fuel with Korean Air and bio-marine fuel with HMM.