Ulsan Port Authority (UPA) has announced that it signed an equity investment agreement worth US$17.6 million with Hyundai Oil Terminal Corporation on 1 August 2024, to establish Korea’s alternative marine fuel supply chain centred on Ulsan Port.
The investment is a follow-up to the 'Plan to Establish an Alternative Marine Fuel Supply Chain' announced 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.
Supply of alternative marine fuel
UPA will seek to establish green shipping corridors to activate the supply of alternative marine fuel
Through this agreement, UPA will participate in the terminal business, prioritising the use of 100,000 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.
At the same time, Hyundai Oil Terminal, with UPA's contribution, is implementing a new terminal investment project worth nearly KRW 300 billion (US$219 million). 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. It is anticipated that the first phase will be in commercial operation during the first half of 2026.
Upon completion of the terminal expansion, Ulsan Port’s annual cargo volume will increase to approximately 2.5 million kl per year with environmental energy cargo volumes expected to make up 800,000 kl per year.
Engines for Korea's shipping
UPA President Kim Jae-gyun said, "This investment is part of UPA's efforts to create an alternative marine fuel supply chain to fulfil 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,” said Kim Jae-gyun. This latest announcement follows June’s MoU between UPA and Hyundai Oil Terminal providing a strategic collaboration to supply alternative marine fuel in Ulsan Port.
