H. Yoo
Research expert covering South Korea
Biofuels in South Korea - Statistics & Facts
While biofuels have existed for years, domestic production and usage in South Korea have been slow to grow until recently. For a fast-paced society such as South Korea, used cooking oil from its domestic fast food and delivery culture would appear to pair well with such alternative fuel options at first glance. However, concerns about single-crop harvesting and environmental damage have made biofuels a cautionary alternative fuel option for a country with little land to begin with. Nevertheless, improved processing methods, partnerships created across industries, and government support have culminated in what could be an opportunity for growth for the biofuel industry in South Korea.
Bioindustry and biofuel energy in South Korea
South Korea's petrochemical industry is one of the strongest in the world, and this has helped lay the groundwork for domestic biofuel production. The bioindustry in South Korea has been growing, with investments in bioindustry companies doubling in the last several years. By sector, the biochemical and bioenergy sector was only second to the biopharmaceutical sector in total investments in 2022. With energy production from biodiesel and biobunker having more than doubled in the last 10 years, biological sources now make up just over one-fifth of power generation from new and renewable sources in the country, much of this from wood pellets.Policy and trade regarding biofuels
Currently, most biodiesel exports go to the United States and Spain, and biodiesel exports by volume have increased by more than five-fold in the last six years. Indeed, global biofuel production has seen a nearly continuous rise in the last twenty years. With demand expected to increase, the South Korean government has expressed plans to further expand the bioindustry, including the production and export of biofuels. In its "Bio Economy 2.0 Promotion Direction," it seeks to have 100 trillion South Korean won in bioeconomy production as well as 200,000 tons in domestic production of bionaphtha by 2030.Biofuels in other industries
Alongside government support, large companies have also taken steps to further develop biofuels for industrial purposes. 2023 marked the first case of bio-jet fuel application in South Korea with the fueling of a Korean Air cargo plane with sustainable aviation fuel in cooperation with GS Caltex. In early 2024, South Korea exported blended biomarine oil for the first time through HD Hyundai Oilbank. A few months later, an agreement was signed for food company CJ CheilJedang to send bio-oil to petrochemical company HD Hyundai Chemical to process into ISCC-certified bionaphtha and eco-friendly plastic products. With no end in sight for biofuel-related projects and investments, the South Korean biofuel industry may well see further growth in the coming years.
