Public-Private Collaboration with the Ministry of Oceans and Fisheries and Korean Register
Biofuel Blend Ratio Raised Up to 30 Percent
Growing Expectations for Expanded Supply of Low-Carbon Marine Fuel
GS Caltex has expanded the foundation for supplying bio ship fuel by leading regulatory changes at the International Maritime Organization (IMO). In collaboration with the Ministry of Oceans and Fisheries and the Korean Register, GS Caltex directly persuaded the IMO to allow bio ship fuel with a 30% blend ratio?which was previously restricted?to be transported via general bunker barges.
On May 13, GS Caltex announced that it played a key role in the regulatory improvement process at the IMO, which recently permitted the transportation of 'B30 bio ship fuel'?containing 30% biofuel?by general bunker barges. At the 83rd session of the Marine Environment Protection Committee (MEPC) held in London, United Kingdom, in April, the IMO officially approved the general transportation of B30 bio ship fuel. Previously, if the biofuel blend ratio exceeded 25%, it was classified as a chemical, so it could only be used exceptionally in a limited number of countries.
GS Caltex and HMM conducted the first pilot operation of a container ship fueled with bio ship fuel. On September 15, 2023, the Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries announced that the Hyundai Tacoma, operated by HMM, departed from Busan heading to Brazil. Yonhap News
This regulatory relaxation gained momentum when GS Caltex first proposed the necessity to the Ministry of Oceans and Fisheries. Subsequently, the company participated directly in international meetings as an advisor to the government delegation, explaining the safety of bio ship fuel based on scientific analysis. GS Caltex believes that its input was reflected in policy documents and served as a key basis for the regulatory amendment. In particular, at the IMO’s Sub-Committee on the Evaluation of Hazardous Substances of Chemicals meeting held in October last year, GS Caltex formed a task force centered on its Policy 1 Team, Biofuel Business Team, and London branch, which accompanied the delegation to the meeting.
The government delegation succeeded in shifting the atmosphere by securing the support of Spain, the EU presidency, against the opposition of the United Kingdom, Japan, and Norway, who insisted on maintaining the existing regulations. They also obtained support from influential countries in the bio ship fuel sector, such as Brazil, Singapore, and China, ultimately leading to final approval. As a result, domestic refiners are expected to secure business opportunities in the newly emerging eco-friendly ship fuel market. In particular, GS Caltex conducted the first domestic pilot bunkering project for B30 bio ship fuel in 2023.
A GS Caltex official stated, "This achievement is significant not only as a simple policy change but also as evidence of a Korean company taking a leading role in the global energy transition," adding, "We will continue to closely collaborate with the government, industry, and overseas networks to lead a sustainable energy market."
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