South Korea Launches Green Marine Fuel Infrastructure Fund

By
Mfame Editor
-
21

South Korea is making strides toward sustainable maritime operations by launching a green marine fuel infrastructure fund. The initiative, co-established by the Ministry of Oceans and Fisheries (MoF) and the Korea Ocean Business Corporation (KOBC), aims to develop eco-friendly fuel facilities and bunkering vessels, with a total investment of ₩1 trillion ($680 million) by 2030.

Key Allocations

  1. ₩600 Billion:
    • For building port storage facilities for liquefied natural gas (LNG), methanol, and ammonia.
  2. ₩400 Billion:
    • For constructing four bunkering vessels to support green fuel supply.

Projects Under the Fund

1. Hyundai Oil Terminal Expansion

  • Cost: ₩240 billion (₩130 billion funded).
  • Location: Ulsan, Hyundai Oil Terminal.
  • Purpose:
    • Construct additional liquid cargo storage to stabilize methanol fuel demand for domestic and international vessels.
  • Background:
    • Hyundai Oil Terminal operates dock facilities for vessels up to 50,000 dwt and offers a storage capacity of 280,000 kilolitres.

2. Yeosu Myodo LNG Hub Terminal

  • Cost: ₩1.4 trillion.
  • Location: Yeosu, on 270,000 m² of reclaimed land.
  • Features:
    • 100,000-tonne pier.
    • Three LNG storage tanks.
    • Transportation pipelines and other facilities.
  • Expected Completion: End of 2027.

Broader Objectives

  • Enhancing Port Competitiveness:
    • Ulsan is designated as a hub for supplying environmentally friendly marine fuels.
  • Government Subsidies and Incentives:
    • Offering 10%-30% subsidies for eco-friendly vessel construction.
    • Encouraging private investment via KOBC’s financial backing and guarantees.
  • Global Strategy:
    • Aligns with South Korea’s efforts to remain competitive in the global maritime sector by ensuring reliable green fuel supplies for both domestic and foreign vessels.

Stakeholder Involvement

A signing ceremony on January 14 will mark the fund’s launch. Participants include:

  • Korea Development Bank.
  • Kyobo Life Insurance.
  • Woori Asset Management.
  • MoF, KOBC, and Hyundai Oil Terminal.

MoF Statement

“The ability to supply environmentally friendly marine fuel determines the competitiveness of ports. We will continue to gain competitive advantage through the management of the fund.”

This initiative underscores South Korea’s commitment to advancing sustainable maritime operations and supporting the global transition to green fuels.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Llyod’s List