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S.Korea’s SK Chemicals Explores Biodiesel Use in Shipping Fuel for IMO 2020

BioRefineries/Renewable Fuel Production, Business News/Analysis, Feedstocks, Field/Orchard/Plantation Crops/Residues, Funding/Financing/Investing, Indonesia, International, Malaysia, Marine/Boat Bio and Renewable Fuel/MGO/MDO/SMF, Marketing/Market Forces and Sales, Opinions, Policy, South Korea, Sustainability
December 16, 2019
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by Jane Chung (Reuters) * S.Korea No.1 biofuel maker testing marine fuel products – exec; * Clear IMO guidelines, legislation for biofuel blending needed; * Says capacity expansion under consideration  — SK Chemicals , South Korea’s top biofuel maker, has started tests on blending its biodiesel with petroleum-based fuels to create low-sulphur marine oil that will comply with new green shipping fuel rules set to kick in within weeks.

The company is also considering increasing its biofuels output by 50% as it eyes what will be a new market in the shipping sector, An Jung-bum, head of the company’s energy& petrochemical business, told Reuters.

An’s firm is adjusting its course to reflect the International Maritime Organization’s (IMO) move to mandate that from January 2020 ships must cut harmful environmental emissions either by burning fuel with 0.5% sulphur, down from the current 3.5%, or installing emissions-removing devices known as scrubbers.

…

SK Chemicals can produce 500,000 kilolitres per year of biodiesel and biofuel oil, currently mainly used for fuel blending for domestic transportation and power generation.

The company primarily uses palm fatty acid distillate, a non-edible palm-oil, as a feedstock from Indonesia and Malaysia.

…

Biodiesel can be blended with marine gasoil to reduce its sulphur content, but the higher costs of producing it remain a hurdle, while guidelines on specifications for biofuel oil to be blended with low-sulphur fuel oil are still under development, An said.

Under the IMO guidelines for 2020 global sulphur limits, diesel fuel can contain up to 7% of biodiesel.   READ MORE

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biodieselBioRefineries/Renewable Fuel Productionelectricity/power generationenvironmental policyIndonesiaInternational Maritime Organization (IMO)Investinglow sulfur marine fuelMalaysiaMarine/Maritime Bio and Renewable/Sustainable Fuel (SMF)market forcesmarkets/salespalm fatty acid distillatepalm oilrenewable marine dieselshippingSouth KoreasulfurSustainabilityTransportation Fuels Policywaste-to-fuel
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