South Korea is launching a green marine fuel infrastructure fund to support the development of environmentally friendly fuel facilities and bunkering vessels, according to Lloyd’s List.
The fund, co-established by the Ministry of Oceans and Fisheries and the Korea Ocean Business Corporation (KOBC), will invest a total of Won1trn ($680m) by 2030, according to a government statement. Of the total, Won600bn will be allocated for building port storage facilities for LNG, methanol, and ammonia, while Won400bn is earmarked for constructing four bunkering vessels.
The initiative is designed to meet growing demand for green fuels from South Korea-flagged vessels and ensure reliable fuel supplies for foreign ships calling at domestic ports. The fund’s first project will involve the construction of additional liquid cargo storage facilities at Hyundai Oil Terminal in Ulsan, at a total cost of Won240bn. Of this, Won130bn will be provided by the fund, with the goal of stabilising methanol fuel demand for both domestic and international vessels.
Hyundai Oil Terminal, which began operations in 2012, features dock facilities for vessels up to 50,000 dwt and approximately 280,000 kilolitres of storage capacity on an 86,821 m² landfill site. Initially established by HD Hyundai Oilbank, the terminal became an independent company after the refiner sold its majority stake in 2021.
The fund’s second project will focus on the construction of the Yeosu Myodo LNG hub terminal, with a total budget of Won1.4trn. The terminal will be built on 270,000 m² of reclaimed land and will include a 100,000 tonne pier, three LNG storage tanks, transportation pipelines, and other facilities. Completion is expected by the end of 2027.
An MoF official told Lloyd’s List the fund was a follow-up to the ministry’s 2023 policy announcement. At the time, the government outlined plans to provide 10%-30% subsidies for the construction of environmentally friendly bunkering vessels and to encourage private investment in green marine fuels through KOBC’s financial backing and guarantees.
The port of Ulsan has been designated as a hub for supplying environmentally friendly marine fuels, as part of the government’s broader strategy to enhance the global competitiveness of South Korea’s ports. A signing ceremony for the fund’s investment will be held on January 14, with participation from major stakeholders, including Korea Development Bank, Kyobo Life Insurance, Woori Asset Management, MoF, KOBC, and Hyundai Oil Terminal.
The MoF said in a statement: “The ability to supply environmentally friendly marine fuel determines the competitiveness of ports. We will continue to gain competitive advantage through the management of the fund.”