Ulsan inks alt fuel supply chain deal

This investment follows the ‘Plan to Establish an Alternative Marine Fuel Supply Chain,’ announced at the government’s emergency economic ministerial meeting in November 2023. UPA is at the forefront of efforts to enhance Korea’s port competitiveness by expanding storage for alternative marine fuels, such as green methanol.

“This investment is part of UPA’s efforts to create an alternative marine fuel supply chain to fulfil the government’s policy,” said UPA president Kim Jae-gyun. “The agreement also marks the first time that UPA has acquired a direct stake in a tank terminal and its operations.

“We will be operating eco-friendly ships based at Ulsan Port, contributing to decarbonisation and creating new growth engines for Korea’s shipping and port industry by establishing green shipping corridors between Korea and the US.”

Under the agreement, UPA will have priority access to 100,000Kl² of the tank terminal’s storage facilities. The initiative also seeks to create green shipping corridors, boosting the supply of alternative marine fuels to both domestic and international energy companies and global shipping lines.

Hyundai Oil Terminal, with UPA’s investment, is embarking on a new terminal investment project worth nearly KRW 300 billion (US$219 million). This project will expand storage capacity at Ulsan’s New Port by 380,000Kl², initially focusing on chemicals and eco-friendly fuels like green methanol and ethanol. The first phase is expected to begin commercial operations in the first half of 2026.

Upon completion, the expanded terminal will increase Ulsan Port’s annual cargo volume to approximately 2.5 million Kl², with environmental energy cargoes expected to constitute 800,000 Kl² per year.

This announcement follows a memorandum of understanding signed in June between UPA and Hyundai Oil Terminal, establishing strategic collaboration for alternative marine fuel supply at Ulsan Port.