A mixed xylene plant of Hyundai Chemical Co., a subsidiary of Hyundai Oilbank, in Seosan, South Chungcheong Province. (image: Hyundai Oilbank)
SEOUL, Aug. 1 (Korea Bizwire) – Lotte Confectionary said Monday it has inked a strategic partnership with Hyundai Oilbank, a major South Korean refiner, to make forays into the biodiesel fuel business.
Biodiesel is an alternative fuel similar to fossil diesel, the most used type of diesel fuel. The substance can be produced from vegetable oil, animal oil and waste cooking oil.
South Korea has been promoting biodiesel fuel since 2002 in an effort to reduce carbon emissions.
Currently, all diesel fuel distributed in the market is mandated to contain at least 3.5 percent biodiesel fuel. The cap will increase to 8 percent by 2030 in line with the government’s carbon neutrality push by 2050.
Under a memorandum of understanding signed Monday, Lotte Confectionary will supply cooking oil waste at its confectionary production plants to Hyundai Oilbank for the production of biodiesel fuel.
Hyundai Oilbank is building a 10,000-square-meter biodiesel fuel plant with an annual capacity of 130,000 tons at the Daesan petrochemical complex in Seosan, around 130 kilometers southwest of Seoul.
The completion date is set for 2023.
“We expect the partnership to create synergy in the field of biodiesel fuel, while further strengthening our competitiveness in the local oil business” a Lotte Confectionary official said.
The two companies are also reviewing plans to set up a joint venture in order to strengthen ties in the procurement of raw materials and boost their global business.
(Yonhap)
