By Diplomacy Journal Lee Kap-soo

HD Hyundai Oil Bank announced on July 29 that it will start exporting bio marine oil from the Pyeongtaek General Bonded Zone for the first time in Korea. Bio marine oil is an eco-friendly marine oil that reduces carbon emissions by more than 65% compared to conventional fossil fuel-based marine oil.

HD Hyundai Oil Bank has begun exporting bio marine oil blended in the General Bonded Zone in Pyeongtaek, Gyeonggi Province. The export became possible after the government lifted restrictions on blending petroleum products in the comprehensive bonded zone as part of its support for the Northeast Asian oil hub project.

“Until now, blending of domestic petroleum products in the comprehensive bonded zone was not possible due to regulations, but with the regulatory reforms by the Korea Customs Service and the Ministry of Trade, Industry and Energy, this is the first case of exporting blended products,” said an official from HD Hyundai Oilbank.

HD Hyundai Oilbank blends very low sulfur heavy fuel oil (VLSFO) with biodiesel from a domestic company. Very low sulfur fuel oil is an eco-friendly marine oil that emits less sulfur than regular marine oil, and the bio marine oil manufactured and sold based on it is the first in Korea.

With this export, HD Hyundai Oil Bank plans to sell 60,000 tons of blended petroleum products worth 60 billion won annually. In the future, it will also sell to overseas oil brokers and foreign-flagged shipping companies, and the export volume is expected to reach 400,000 tons and 400 billion won annually.