South Korean biodiesel producer Dansuk Industrial exported this month 3,000t of sustainable marine fuel (SMF) to the Netherlands, marking the company's first export to Europe. Dansuk produces 50,000 t/yr of SMF at its Pyeongtaek and Siheung factories in Gyeonggi province from a blend of fatty acid pitch and acid oil pitch by-products of biodiesel made from used cooking oil and animal fats, bio-heavy oil and raw materials palm oil mill effluent, spent bleaching earth oil and cashew nut shell liquid. The International Sustainability and Carbon Certification-compliant fuel qualifies for renewable energy units in the Netherlands and is eligible for double counting towards European renewable mandates. The company is also considering supplying Singapore and its domestic market, although South Korea currently has no incentives or mandates for its use.
But Dansuk anticipates global demand of 10mn t/yr of eco-friendly marine fuel by 2050 as shipowners meet decarbonisation targets and the International Maritime Organisation's limits on sulphur in fuel oil used by vessels operating outside designated emissions control areas (ECAs) to 0.5pc. Fuel oil used by ships operating inside ECAs is limited to 0.1pc sulphur. Dansuk currently has no plans to boost output despite its bullish outlook and will instead gauge demand before making any capacity additions. It already has 450,000 t/yr of renewable diesel and sustainable aviation capacity due on line in 2024-25 to supply domestic and international markets.