South Korean trio intends to facilitate biofuel use in the maritime sector

South Korean energy company GS Caltex, steel-making firm POSCO and shipping line H Line Shipping have partnered to facilitate the reduction of carbon emissions in the shipping industry by using biofuels.

PHOTO: Company representatives at the deal signing ceremony. GS Caltex

Under the agreement, the three companies will work to accelerate the use of biofuel in the maritime sector. GS Caltex will secure a supply of biofuels and develop a biofuel production infrastructure. Meanwhile, H Line Shipping will support POSCO to reduce carbon emissions from its shipping logistics chain.

In line with this, the companies plan to start biofuel trials on POSCO’s bulk carriers later this month. GS Caltex will supply its biofuel - B30 biofuel blend - for the pilot project.

The B30 blend will be made up of 30% marine biodiesel produced from waste cooking oil and 70% conventional marine heavy oil. South Korean biofuel company DS Danseok produces the biodiesel used for blending.

Last August, GS Caltex received the International Sustainability and Carbon Certification EU (ISCC-EU) for its biofuel blend.

Biofuel blended with waste cooking oil-based biodiesel can reduce carbon emissions by more than 80%, GS Caltex claims.

Biofuel can be considered the most “realistic alternative for carbon reduction in the shipping sector because it is cheaper than methanol or ammonia and can be used without investing in new infrastructure or building new ships,” GS Caltex adds.

“In the future, we plan to contribute to reducing carbon emissions for global customers by communicating with not only domestic and foreign shipping companies but also shippers,” GS Caltex's business operations division head Kim Byeong-ju says.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online