HD Hyundai Oilbank Starts Bio Diesel Plant Operation "Korea's First Supercritical Process"

Production Capacity of 130,000 Tons per Year at Daesan Plant
CEO Ju Young-min: "Foundation for Bio Aviation and Marine Fuel Production"

HD Hyundai Oilbank announced on the 18th that it has commenced commercial operation of a dedicated biodiesel plant with an annual capacity of 130,000 tons and has begun full-scale production.

HD Hyundai Oilbank produces biodiesel at a 39,669㎡ (12,000 pyeong) facility within the Daesan plant.

Biodiesel is a fuel produced from animal and vegetable oils. It has a similar composition to petroleum-based fuels and offers significant greenhouse gas reduction effects. Among bio-based fuels such as bio jet fuel and bio marine fuel, biodiesel is the first to be commercialized worldwide. In South Korea, the mandatory blending ratio, currently at 4%, is expected to increase to around 8% by 2030.

Panoramic view of the HD Hyundai Oilbank biodiesel plant in Daesan, Chungnam [Photo by HD Hyundai Oilbank]

HD Hyundai Oilbank has introduced the supercritical process to its biodiesel plant for the first time in Korea. Unlike conventional biodiesel plants, the supercritical process can produce products under high temperature and high pressure conditions without using catalysts. Using catalysts in biodiesel production leads to issues such as disposal of spent catalysts and wastewater emissions during catalyst treatment.

Producing biodiesel without catalysts reduces wastewater and allows the use of second-generation non-edible feedstocks, which are difficult to process due to high acidity. Conventional biodiesel processes use first-generation edible feedstocks such as soybean oil and palm oil, which have the disadvantage of high dependence on food resources and cause deforestation.

To secure a stable supply chain of raw materials, HD Hyundai Oilbank is actively engaging in a circular economy for waste resources in cooperation with Lotte Wellfood. HD Hyundai Oilbank will receive biodiesel feedstocks such as waste cooking oil from Lotte Wellfood, and the biodiesel products produced based on these will be supplied back to transportation trucks of Lotte Group affiliates.

Joo Young-min, CEO of HD Hyundai Oilbank, stated, "With the completion of the biodiesel plant, we have laid the foundation for the production of bio jet fuel and marine fuel," adding, "In the future, we will actively pursue the transition to an eco-friendly comprehensive energy company, including overseas biodiesel export business."

HD Hyundai Oilbank-Lotte Wellfood Bio Diesel Waste Resource Circular Economy [Image source=HD Hyundai Oilbank]