South Korea passed amendments to its laws on 9 January which will make it easier to produce biofuels via co-processing, refiners said.
Refiners will no longer need to get government approval for co-processing, as biofuels feedstocks that were previously not officially registered as feedstock to oil refineries have now been so registered, they said.
Refiners now have the green light to supply co-processed biofuels domestically and internationally, and can use those fuels to meet South Korea's national biofuels mandates.
The Korean National Assembly passed an amendment to the Petroleum and Alternative Fuels Business Act on 9 January. This was to encourage more investment from the domestic oil industry in eco-friendly fuels — namely biofuels and renewable synthetic fuel — as well as achieve carbon neutrality.
The amendment will be promulgated after being transferred to the government and approved by the State Council, and implemented six months later.
It will allow the input of "eco-friendly refining raw materials" designated by the ministry of trade, industry and energy (Motie) into the oil refining process and help establish a stable supply chain of environmentally-friendly fuels.
New regulations have also been established to allow the use of waste plastic pyrolysis oil, waste lubricants and biomass in the refining process. These will also encourage private-sector investment in biofuels.
There was a meeting held with authorities and companies in the biofuels space to gather industry feedback on the amended laws on the afternoon of 10 January, sources from two South Korean companies said. The agenda included discussions on bio marine fuels and supply difficulties, challenges in using B100 biodiesel, and challenges related to greenhouse gas emissions from different feedstocks under the International Maritime Organisation's (IMO's) Carbon Intensity Indicator (CII) ratings.
Energy security, CCUS legislation
South Korea has also passed legislative acts to enhance energy and mineral supply security.
The country passed the Special National Resource Security Act, given "the trend of resource weaponisation in major countries and geopolitical crises such as the Russia-Ukraine war and the Israel-Hamas crisis", according to Motie on 9 January, especially since South Korea relies on imports for over 90pc of its energy.
The act designates oil, natural gas, coal, hydrogen, key minerals, as well as materials and components used in new and renewable energy facilities as "core resources". It also includes the stockpiling of resources, analysing supply chain vulnerabilities, operating early warning systems, as well as supporting the expansion of domestic and overseas production.
South Korea also passed an act on carbon capture, utilisation and storage (CCUS) to "prepare the legal foundation needed to respond to the climate crisis and foster the CCUS industry", Motie said. The act lays out the process for securing and operating CO2 storage, as well as special provisions for CO2 supply, among others. It also includes various regulations aimed at supporting corporate research and development.
The CCUS Act will be promulgated after receiving approval from the State Council, and implemented a year after its promulgation.
"The enactment of the CCUS Act has contributed to carbon neutrality and laid the basis for administrative and financial support for CCUS-related technology development and industrial development," energy policy officer Choi Yeon-woo said.
