HMM, GS Caltex to cooperate for eco-friendly biofuel project

South Korea's HMM Co. has partnered with GS Caltex for an eco-friendly biofuel project aimed at reducing greenhouse gas emissions, according to an announcement on Wednesday.

The marine biofuel oil will be produced by mixing bunker C fuel used in ships with bio-diesel made from waste products, emitting over 80% fewer greenhouse gases than fossil fuels, at a 30:70 ratio.

Biofuel for ships is gaining attention as it allows ships to comply with the International Maritime Organization's (IMO) greenhouse gas reduction plan without engine modification. By 2050, the IMO mandates reducing greenhouse gas emissions by at least 50% compared to 2008 levels.

HMM plans to conduct maritime verification tests for three 24,000 TEU (twenty-foot equivalent unit) container ships in the second half of this year, and the data collected will be provided to government agencies. It will contribute to the "marine biofuel oil development project" promoted by the government. HMM will also enhance its eco-friendly competitiveness by receiving a stable supply of biofuel from GS Caltex.

"We will proactively respond to greenhouse gas reduction and climate change," said Park Jin-ki, HMM's Executive Vice President. "Through continuous research and testing, we will transform ourselves into an eco-friendly shipping company."

"With this MOU as a starting point, we will accelerate the biofuel for ships project and create various opportunities for cooperation in the field of carbon emission reduction in the shipping industry with HMM," said Lee Seung-hoon, Head of the S&T Division of GS Caltex.

Write to Jae-Fu Kim at hu@hankyung.com