South Korean port inks investment deal for alternative marine fuel supply chain

An equity investment agreement worth US$18M, signed between UPA and Hyundai Oil Terminal Corp on 1 August 2024, is centered on Ulsan Port. The investment is a follow-up to a previously announced plan to establish an alternative marine fuel supply chain at the government’s emergency economic ministerial meeting in November 2023, with UPA taking the lead to strengthen the competitiveness of Korea’s ports by expanding storage tanks dedicated to alternative marine fuels, such as green methanol.

Through this agreement, UPA will participate in the terminal business, prioritising the use of 100,000 kilolitres (kl) of the tank terminal’s storage facilities. In addition, UPA will seek to establish green shipping corridors to activate the supply of alternative marine fuel to domestic and foreign energy companies and global shipping lines.

Hyundai Oil Terminal, with UPA’s contribution, is implementing a terminal investment project worth nearly KRW 300Bn (US$219M). The project will see storage facilities at Ulsan’s New Port expand by 380,000 kl, with the first phase being the storage of chemicals and oils, including eco-friendly fuels such as green methanol and ethanol. 

Ulsan Port anticipates the first phase will be in commercial operation during the first half of 2026. 

Upon completion of the terminal expansion, the port’s annual cargo volume will increase to approximately 2.5M kls per year with environmental energy cargo volumes expected to make up 800,000 kl per year.  

Session 2 of Riviera’s upcoming Maritime Decarbonisation, Europe: Conference, Awards & Exhibition will discuss the short to mid-term outlook for alternative fuel usage and forecast the availability and economics of efuels. Riviera will hold its Maritime Decarbonisation, Europe: Conference, Awards & Exhibition from 24-25 September 2024 in Amsterdam.