Ulsan Port Authority (UPA) has signed a $17.6 million equity investment agreement with Hyundai Oil Terminal Corporation to establish an alternative marine fuel supply chain in South Korea.
Centred on Ulsan Port, the supply chain initiative is a follow-up to the ‘Plan to Establish an Alternative Marine Fuel Supply Chain’ which was announced at the South Korean government’s emergency economic ministerial meeting in November 2023. It also builds on a Memorandum of Understanding (MoU) signed by UPA and Hyundai Oil Terminal in June.
In a statement sent to Bunkerspot today (7 August), UPA said it will take the lead in setting up the supply chain, which will see an expansion in tank storage dedicated to alternative marine fuels, such as green methanol.
UPA will also look to establish green shipping corridors to activate the supply of alternative marine fuel to domestic and foreign energy companies and global shipping lines.
Meanwhile, Hyundai Oil Terminal is implementing a new $219 million terminal investment project, with a contribution from UPA, to expand storage facilities at Ulsan's New Port. This will include more capacity for ‘eco-friendly’ fuels such as green methanol and ethanol. It is anticipated that the first phase will be in commercial operation during the first half of 2026.
UPA President Kim Jae-gyun commented: ‘This investment is part of UPA;s efforts to create an alternative marine fuel supply chain to fulfill the government's policy. The agreement also marks the first time that UPA has acquired a direct stake in a tank terminal and its operations.
‘We will be operating eco-friendly ships based at Ulsan Port, contributing to decarbonisation and creating new growth engines for Korea's shipping and port industry by establishing green shipping corridors between Korea and the U.S.’
