SEOUL, May 4 (Korea Bizwire) — Major Korean refiner GS Caltex Corp. has joined hands with POSCO International Corp., the trading arm of steel giant POSCO, to strengthen its eco-friendly bio business.
The two parties recently signed a memorandum of understanding to create a value chain from raw material refining to biochemical product production by leveraging their respective biofuel production technologies and biofuel refining infrastructure.
They plan to establish a raw material refining facility and a biodiesel plant in Indonesia as their first joint project.
The two companies will make an investment in the joint plant on a 50:50 basis, but the exact amount of investment and timeline have yet to be determined.
In addition, they also intend to reduce greenhouse gases by carrying out biofuel production and waste oil collection at the same time as part of the United Nations Framework Convention on Climate Change Clean Development Mechanism (CDM).
Under the CDM, developed countries earn credits for greenhouse gas emissions reductions achieved in developing countries by investing in technology and capital there.
J. S. Shin (email@example.com)