HD Hyundai Oilbank is hitting the gas to explore the bio business by signing a succession of deals to purchase eco-friendly bio raw materials.
HD Hyundai Oilbank struck a deal with Korindo Group and LX International to purchase 40,000 tons and 80,000 tons of palm fatty acid distillates (PFAD), respectively, the refinery company said on Nov. 2.
PFAD is a side product of a process of producing palm oil products, but it has been utilized by a few bio diesel plants as a raw material due to the high acidity.
Korindo Group is a company that was established by a businessman of Korean descent in Indonesia in 1969.
The group specializes in diverse businesses, such as paper, afforestation, palm trading and logistics. Korindo has prioritized the palm business for 25 years.
The deal will allow HD Hyundai Oilbank to secure a stable value chain of biofuel.
A bio diesel plant, being built by the refinery company at Daesan, Chungcheongnam-do, is to be put into commercial operation in December.
The plant will have an annual production capacity of 130,000 tons.
HD Hyundai Oilbank plans to reutilize waste cooking oil, which is normally thrown away, as a bio diesel raw material on top of PFAD.
In his speech at the signing ceremony, HD Hyundai Oilbank President Joo Young-min said, “Both companies are expected to have diverse synergetic effects as they have different businesses, and we will explore ways of proactively implementing joint projects in the future.”
Chairman Seung Beom-soo of Korindo Group, said, “We want to expand cooperation between the two companies to diverse areas beyond the supply of PFAD. “
Lee Seung-soo of the Global Business Division at HD Hyundai Oilbank and Sunoco LP Chief Commercial Officer Austin Harkness pose for a photo after signing a deal to supply petroleum products to America’s largest independent fuel distributor through 2024.
HD Hyundai Oilbank also struck an agreement with LX International to buy PFADs.
LX International entered the palm farming business in Indonesia in 2009, and the company has nurtured the business as its new growth engine.
LX International owns palm farming areas covering a combined 2.4 hectares, and the company is engaged in palm oil retailing in Indonesia.
Meanwhile, HD Hyundai Oilbank plans to dedicate a bio aircraft oil production plant with an annual capacity of 500,000 tons by 2025.