South Korean refiner HD Hyundai Oilbank is accelerating its pivot away from traditional oil processing, betting on biofuels and recycling to counter the declining prospects of fossil fuel refining.
The company, partly owned by Saudi Aramco, opened Korea’s first biodiesel facility using supercritical processing technology in April. The 130,000-ton annual capacity plant positions the refiner to capture growing demand as countries mandate higher biodiesel content in fuel blends.
The Daesan-based company claimed another milestone in June by becoming Korea’s first refiner to export sustainable aviation fuel to Japan. The fuel was produced through co-processing, which uses waste materials instead of fossil fuels.
HD Hyundai Oilbank is planning a dedicated SAF production facility using hydrotreated vegetable oil, targeting completion after 2027. The company has also entered the marine biofuel market with its first export in July.
Beyond alternative fuels, the refiner is expanding into plastic recycling. The company processes waste plastics into circular naphtha at its refineries, supplying the material to petrochemical manufacturers. It’s also partnered with CJ CheilJedang for waste cooking oil supplies and provides recycled carbon black to Hankook Tire.
