HD Hyundai Oilbank inks green biofuel supply contracts

[Courtesy of HD Hyundai Oilbank]

South Korean refiner HD Hyundai Oilbank Co. is accelerating efforts to expand its biofuel business by signing two separate contracts for eco-friendly energy resources.

HD Hyundai Oilbank said Tuesday that it signed a contract with Indonesia’s Korindo Group to buy 40,000 tons of palm fatty acid distillate (PFAD). It also inked an 80,000 ton deal with LX International Corp.

PFAD is a by-product of physical refining of crude palm oil products. Only a limited number of biodiesel plants across the world can utilize the residue as a fuel source due to its high acidity.

The latest deals have allowed HD Hyundai Oilbank access to biodiesel suppliers as the company plans for commercial operations of its biodiesel plant with an annual capacity of 130,000 tons per year at the end of this year.

HD Hyundai Oilbank also plans to use waste cooking oil as a fuel for the biodiesel plant.

Korindo Group will not only supply biomaterials but also collaborate in utilizing biomass resources such as wood pellets and participating in forestry-related carbon reduction initiatives, the company said.