HD Hyundai Oilbank Expands into Biofuel and Circular Economy Initiatives

HD Hyundai Oilbank is making remarkable progress in the biofuel and circular economy sectors, positioning itself as a key player in sustainable energy innovation. This aligns with global efforts toward renewable energy and environmental responsibility, showcasing the company’s dedication to resource circularity and green advancements, according to the BusinessKorea.

In 2021, the company achieved a significant milestone by producing circular naphtha through a groundbreaking process that integrates pyrolysis oil from waste plastics into crude oil refining. This naphtha was subsequently supplied to nearby petrochemical companies, enabling the creation of new plastic products and marking a major step in advancing the circular economy.

This March, HD Hyundai Chemical, an affiliate, became South Korea’s first company to produce ISCC-certified bio naphtha using bio-based raw materials. Derived from waste cooking oil supplied by CJ CheilJedang, this achievement underscores the company’s ability to transform waste into valuable resources. The following month, HD Hyundai Oilbank completed South Korea’s first biodiesel plant utilizing a supercritical process. This innovative method enhances production efficiency, allowing the facility to produce 130,000 tons of biodiesel annually.

In June, HD Hyundai Oilbank became the first domestic refinery to export sustainable aviation fuel (SAF) produced via coprocessing to Japan. SAF is a biofuel designed for aviation, offering a sustainable alternative to conventional jet fuel with a significantly reduced carbon footprint. The company further demonstrated leadership in alternative energy by exporting blended bio marine fuel in July, supporting the transition to eco-friendly transportation fuels.

The momentum continued in August when the South Korean government unveiled its "SAF Expansion Strategy," aiming to promote SAF production. In response, HD Hyundai Oilbank is considering building a hydrogenated vegetable oil-based SAF plant, with completion anticipated after 2027. Last month, affiliate HD Hyundai OCI supplied circular carbon black—recycled from waste tires—to Hankook Tire & Technology. This initiative highlights the company’s commitment to reprocessing waste materials like plastics, lubricants, and tires into valuable products such as naphtha and base oil.

HD Hyundai Oilbank’s efforts reflect a broader strategy to diversify from traditional fossil fuel operations into bioenergy and circular economy ventures. As part of HD Hyundai’s energy sector, the company collaborates with affiliates, including HD Hyundai Chemical and HD Hyundai OCI, to drive innovation and achieve substantial business growth. Over the past decade, these partnerships have enabled the company to overcome challenges and set new benchmarks in sustainability.

A company representative emphasized this forward-looking vision, stating, “HD Hyundai Oilbank is set to significantly expand its new biofuel business,” reaffirming the company’s commitment to environmental stewardship and sustainable development.