Hyundai Oilbank eyes 'white biotechnology' as future growth engine
White biotechnology refers to the production of energy from renewable biomasses such as plants and sugar cane in order to reduce the use of fossil fuels. It is considered a type of business method to reduce carbon emissions.
“We selected white biotechnology business as one of our future growth engines along with blue hydrogen and eco-friendly chemical material business under the judgement that oil refining and petrochemical businesses that use oil as the core material cannot guarantee us sustainability,” Hyundai Oilbank said in Wednesday's statement.
Detailed plans for the business include the company's aim to build a biodiesel facility at 10,000 square meter site at its Daesan plant in South Chungcheong by 2023. The facility will have 130,000 tons annual production capacity.
Hyundai Oilbank also plans to shift part of its facility at its Daesan plant to produce hydrogenated vegetable oil (HVO). HVO is renewable diesel fuel derived from hydrogenation and the hydrocracking of various vegetable oils, such as soybean, sunflower and palm oil, as well as animal fats. It can be used in conventional diesel engines, pure or blended with fossil diesel.
The oil refining company is considering building more white biotechnology manufacturing plants overseas, including in Indonesia.
Hyundai’s white biotechnology business is unique to others as the process is considered more environmentally friendly, the company said.
The conventional business focuses on using edible biomasses such as corn and soybean. But considering the serious side effects it brings to the environment like forest destruction, Hyundai Oilbank tries to use inedible resources such as oil sludge, used cooking oil and damaged palm fruit as material.
The inedible materials are cheaper than edible resources, according to the company.
“We aim to see 70 percent of our profits come from the new business sectors, white biotechnology, blue hydrogen and eco-friendly chemical material businesses by 2030," Hyundai Oilbank CEO Chu Young-min said.
BY SARAH CHEA [chea.sarah@joongang.co.kr]
with the Korea JoongAng Daily
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