According to South Korea's Ministry of Trade, Industry and Energy website news release on October 14, 2022, Trade, Industry and Energy Minister Lee Chang-yang held a conference on October 13 at the Korea Press Center in Seoul with industry representatives to sign a “mutual growth MOU” and announced the Ministry’s plan for developing and expanding effective use of eco-friendly biofuel.
The plan was drafted and prepared against the backdrop of growing market prospects for eco-friendly biofuel as an effective means to respond to climate change, through extensive communication and consultation with experts in order to nurture the domestic industry into a promising industry of the future.
Biofuel is not produced from fossil fuels and has a chemical makeup similar to that of petroleum products. It is an eco-friendly fuel that can be used without applying any structural changes to existing combustion engines and infrastructure. It can mixed with fossil fuels or be their complete alternative. Biodiesel and biogas are examples of biofuel.
Aviation and marine transport industries are some sectors where biodiesel is essential, especially as these industries cannot replace fuel with electricity, and meanwhile, international environmental regulations are tightening day by day. Considering the domestic economy’s high oil reliance, 100 percent of which has to be imported, biofuel is anticipated to advance Korea’s energy security.
The following are the five key points outlined in the Ministry’s “Eco-Friendly Biofuel Development Measures.”
One, in the case of biodiesel that is mixed with generic diesel as mandated by the Renewable Fuel Standard (RFS), the mandatory mix ratio is to be raised from 5.0 percent to 8.0 percent by 2030.
Two, for aircraft and ship biofuel, a swift demonstration process is needed for prompt domestic introduction (by 2026 for aircrafts, and by 2025 for ships). To establish legal grounds for new biofuels, research service should be contracted by this year, followed by amendment of related laws starting in 2023.
Three, businesses must be provided support in their collection and utilization of materials like waste plastic so that stable supply of materials for biofuel production can be secured. An ecosystem for mutual growth should be established through close alignment between materials suppliers and biofuel producers. For materials not easily found in Korea, companies’ overseas production and procurement efforts will be assisted.
Four, large-scale eco-friendly integrative biofuel technology development will begin this year, for which essential tasks will be selected and prioritized. These tasks will likely include the securing of sustainable materials like microalgae, enhancing biofuel production efficiency, and production of bio-naphtha and other bio materials. A prefeasibility study is scheduled for 2024.
Five, a major goal is to establish a mutually cooperative system between producers and consumer businesses of biofuel from the very first eco-friendly biofuel introduction stages so that a stable supply chain can be built. Based on the MOU signed on this occasion, a public-private committee for joint eco-friendly biofuel expansion will be formed to assess and review this policy’s follow-up measures and source new joint projects.
Minister Lee encouraged the industry, stating that “it is very meaningful for Korean industries to make joint efforts for the vitalization of eco-friendly biofuel and other promising sectors amid intensifying competition for core materials and supply chain race across global energy markets.”
He relayed that “the Ministry recognizes the importance of establishing a timely and stable supply chain, and will continue to push policies to invigorate the eco-friendly biofuel industry.”
The MOU signing ceremony and industry conference was attended by various government officials and representatives of relevant industries, including Cha Dong-hyung, chairman of the board for Korea Petroleum Quality & Distribution Authority (K-Petro), Hyundai Oil Bank CEO Chu Young-min and Korea Shipbuilding & Offshore Engineering President Ahn Kwang-hun.
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Published on October 19, 2022 1:03 PM (GMT+8)Last Updated on October 19, 2022 1:04 PM (GMT+8)
