Expansion of Businesses such as Biodiesel and SAF
Visible Achievements in the Circular Economy Sector
HD Hyundai Oilbank is actively expanding new businesses such as bioenergy and circular economy ventures, moving away from its fossil fuel-centered business structure.
According to the refining industry on the 29th, HD Hyundai Oilbank is discovering new growth engines centered on biofuels and the circular economy. In April, the company completed the construction of Korea's first biodiesel plant using supercritical technology, starting an annual production of 130,000 tons of biodiesel. This strategy aims to respond to market demand in line with the global trend of increasing biodiesel blending ratios.
It is also showing a leading approach in the bio aviation fuel sector. HD Hyundai Oilbank became the first domestic refiner to export Sustainable Aviation Fuel (SAF) produced using the Co-processing method to Japan.
SAF is gaining attention as the most practical alternative to conventional aviation fuel. In August, the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy,' laying the foundation for a large-scale expansion of sustainable aviation fuel projects. HD Hyundai Oilbank is also considering establishing an SAF production plant using hydrotreated vegetable oil after 2027.
The company is achieving results in the transportation alternative energy market by exporting blended bio marine fuel using Korea's first comprehensive bonded zone.
HD Hyundai Oilbank is also showing remarkable performance in the circular economy sector. The circular economy business involves collecting and reprocessing waste plastics, waste lubricants, and waste tires to reproduce naphtha, propylene, lubricating base oils, and more. In 2021, it produced circular naphtha by inputting pyrolysis oil from waste plastics into the crude oil refining process, which was then supplied to nearby petrochemical companies and reborn as new plastic products.
In March, HD Hyundai Chemical, a petrochemical affiliate, succeeded in producing bio naphtha that received the ISCC certification, an international certification, for the first time in Korea. This bio naphtha was made from bio raw materials such as waste cooking oil supplied by CJ CheilJedang and is evaluated as a case of establishing a resource circulation system.
Recently, the affiliate HD Hyundai OCI supplied circular carbon black made by recycling waste tires to Hankook Tire & Technology.
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