Seoul: GS Caltex Corp., South Korea's second-largest refiner by sales, announced its plans to explore the production of biofuel by recycling waste from palm oil mills in Indonesia. This initiative is part of the company's efforts to mitigate greenhouse gas emissions by utilizing palm oil mill effluent (POME) to create bio-based raw materials and reduce methane emissions, which significantly contribute to global warming.
According to Yonhap News Agency, the POME in Indonesia is often treated in open-air ponds, which break down organic matter but also release substantial amounts of methane into the atmosphere. GS Caltex is set to conduct a comprehensive feasibility study over the next six months to evaluate the project's potential in reducing greenhouse gases and its economic viability. The findings of this study will determine the extent and timing of GS Caltex's investment in establishing Indonesia's first POME oil processing facility.
The processed POME oil could be instrumental in producing sustainable aviation fuel (SAF) and various other biofuels. Notably, Indonesia is the leading producer and exporter of palm oil globally. In alignment with its commitment to environmental sustainability, GS Caltex has been chosen for the South Korean government's 2025 greenhouse gas reduction project feasibility study support program. This initiative encourages Korean companies to engage in overseas emission reduction activities as part of South Korea's 2030 Nationally Determined Contribution (NDC) to combat climate change.
South Korea's current NDC plan aims for a 40 percent reduction in greenhouse gas emissions from 2018 levels by the year 2030, aligning with global efforts to tackle climate change through innovative and sustainable solutions.