Progress on Transport Biofuels in Korea

by Jin-Suk Lee and Kyu-Young Kang (IEA Bioenergy Task 39) Since Korea imports over 95% of its energy demand, thus energy security has always been an important driver in the national agenda. In addition, CO2 mitigation has become another important driver as a globally significant issue. The Korea Ministry of Environment (KMOE) announced the revised CO2 mitigation plan in December 2015 (Figure 1) with a target to reduce CO2 emissions by 37% by 2030.

The target for transport biofuels will be 1.41 x 106 toe in 2035, 2.8 times greater than biodiesel supply in 2015.

The target of transport biofuels in 2035 indicated in the 4th RE Plan is only a third of the original target set in 3rd New & Renewable supply plan (3rd RE Plan) (Figure 4). The decrease in the target for transport biofuels in Korea is mainly due to the projected poor availability of suitable feedstocks.

In Korea, biodiesel is used as transportation fuel either as a low-blend (B2) or high blend (B20). For low-blends use, biodiesel (B100) is supplied to all Korean oil refineries for blending and sold as a low blend (B2) at all public filling stations (Figure 5). Some fleet users are allowed to use high blends (B20) on a voluntary basis. However, since there is no additional incentive for using high blends of biodiesel, their use is negligible.

To support implementation of transport biofuels, a Renewable Fuel Standard (RFS) action plan was also prepared (Figure 6). According to the plan, the blending % of biodiesel in fossil diesel would be increased to 4% (scenario 2) or 5% (scenario 1) in 2020 and bioethanol blending (E3) would commence in 2017.

Bioethanol
For ethanol, the major issue has been the compatibility of the established transport infrastructure including fuel distribution and vehicles. Following projects on compatibility of fuel distribution infrastructure, a compatibility study of gasohols (E3, E5, E10) and ETBE10 with engine parts were conducted by Korea Petroleum Quality & Distribution Authority (KPetro) for two years, 2013-2014. Subsequently, KPetro is carrying out a demonstration project to identify the proper implementation plan for ethanol blended fuels in Korea. Thirty gas stations in Jeju island are participating in an E3 demonstration supply project. The other thirty gas stations in Yeosu and Ulsan Chemical complex are participating in the trials for ETBE10 supply. The project will be continued until the end of 2018 after which the implementation plan for bioethanol, direct blending of ethanol (E3 or E5) or ETBE10 will be determined.
Biogas
Biogas collected from landfill sites and anaerobic digestion plants are mainly used for heat and power generation. However, two demonstration projects for utilizing biogas as motor fuel have been conducted. The first project was started at Sudogwon landfill sites in Incheon from 2011 that produce 370 m3/hr to fuel 220 CNG buses. Biomethane is produced by a Pressure Swing Adsorption (PSA) process. The other project was started from 2009 at Seonam sewage treatment facility located near Seoul. Biogas is purified by a water scrubbing process licensed from Swedish Biogas International (SBI) and the production capacity of the plant is 180 m3/hr. Biomethane produced is used to fuel thirty CNG buses. The status of the transport biofuels are summarized in Table 2.

Advanced biofuels
Although there are currently no commercial facilities producing advanced biofuels in Korea, active R&D projects are under way to develop new biofuel production technologies and alternative feedstock.
Biobutanol
GS-Caltex, one of the leading oil refineries in Korea, has been developing a concentrated sulfuric acid hydrolysis technology for cellulosic bio-butanol production. In September 2016, the company announced construction of a $45 million pilot plant having the capacity of 400 ton butanol/year at Yeosu, Chonnam Province which is aimed for completion in late 2017. The main feedstocks used for bio-butanol production are going to be waste wood and imported palm residues. If this new GS-Caltex bio-butanol pilot plant is successful, it could expand into a full-scale commercial plant to produce bio-butanol. The company has also signed an MOU with Biomass Green Technology (BGT) in Malaysia for conducting a feasibility study for construction of the first commercial scale cellulosic bio-butanol plant in Sabah, Malaysia. Since the biomass resource availability in Korea is poor, utilization of foreign biomass may be the only option to achieve the implementation target for transportation biofuels. Among various possible candidates, palm residues available in Southeast Asia region may be the most important. A business model for transport biofuels based on palm residues is shown in Figure 10.

Biojet fuel
Consumption of jet fuel in 2015 was 3.4x106 kL, about 12% of total transport fuels consumed. However, the growth in jet fuel consumption is the highest among the transport fuels, about 7%/year. So interest in bio-jet fuel to reduce CO2 emissions in aviation sector is growing. The Institute of Advanced Engineering (IAE) has just started a project to establish a pilot process having a production capacity of 50 kL/yr. The production facility will be constructed and in operation by late 2018 and the biojet fuel produced will be tested with a jet turbine engine for military application. Other research on biojet fuel production from ethanol is also underway.
Algal biofuels
The other resource for biofuels production considered in Korea is algal biomass, micro- and macroalgae. Active research projects are under way not only to improve the productivity of biomass but to develop conversion technologies. However, time to commercialization may be lengthy. READ MORE