August 09, 2024 [Rigzone]- Korea is advancing its plans to establish an alternative marine fuel supply chain centered on the country’s Ulsan Port.
The Ulsan Port Authority (UPA) has signed an equity investment agreement worth $17.6 million with Hyundai Oil Terminal Corporation for the alternative marine fuel supply chain, the port authority said in a news release.
Through the agreement, UPA will participate in the terminal business, prioritizing the use of 100,000 kiloliters of the tank terminal’s storage facilities. In addition, UPA said it will seek to establish green shipping corridors to activate the supply of alternative marine fuel to domestic and foreign energy companies and global shipping lines.
Further, Hyundai Oil Terminal is implementing a new terminal investment project worth almost $219 million (KRW 300 billion). The project will see storage facilities at Ulsan’s New Port expand by 380,000 kiloliters, with the first phase being the storage of chemicals and oils, including eco-friendly fuels such as green methanol and ethanol. The first phase will be in commercial operation in the first half of 2026, according to the release.
Upon completion of the terminal expansion, Ulsan port’s annual cargo volume will increase to approximately 2.5 million kiloliters per year with environmental energy cargo volumes expected to make up 800,000 kiloliters per year.
UPA President Kim Jae-gyun said, “This investment is part of UPA’s efforts to create an alternative marine fuel supply chain to fulfill the government’s policy. The agreement also marks the first time that UPA has acquired a direct stake in a tank terminal and its operations”.
“We will be operating eco-friendly ships based at Ulsan Port, contributing to decarbonization and creating new growth engines for Korea’s shipping and port industry by establishing green shipping corridors between Korea and the U.S.,” he added.
The agreement follows a memorandum of understanding signed by UPA and Hyundai Oil Terminal in June, which set forth a strategic collaboration to supply alternative marine fuel in Ulsan Port.
In November 2023, the Korean government announced the “Plan to Establish an Alternative Marine Fuel Supply Chain” at its emergency economic ministerial meeting. UPA said it is taking the lead to strengthen the competitiveness of country’s ports by expanding storage tanks dedicated to alternative marine fuels, such as green methanol.
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