Company expands low-carbon marine fuel portfolio to meet tightening global environmental regulations
S-OIL announced that it has begun supplying B30 Very Low Sulfur Fuel Oil (VLSFO), a marine fuel containing 30 percent sustainable biofuel. The product is designed as a practical low-carbon alternative that can be used in existing vessels without engine modifications, enabling shipping companies to reduce carbon emissions while complying with environmental regulations introduced by the International Maritime Organization (IMO) and the European Union (EU).
A key competitive advantage of S-OIL's bio bunker fuel business is its integrated supply chain based in Ulsan. The company has established a one-stop operating system that links VLSFO production at its Onsan Refinery with nearby biofuel production facilities and storage infrastructure, allowing feedstock sourcing, blending, storage, and fuel supply to be managed within a single industrial cluster.
By consolidating the entire value chain in one region, S-OIL expects to reduce logistics requirements during production while improving operational efficiency and ensuring a stable supply of low-carbon marine fuel.
The company also benefits from its strategic location at Ulsan Port, one of Korea's major shipping hubs with growing demand for bio bunker fuel, particularly from automobile carriers and other international vessels. Leveraging its existing bunkering operations and regional infrastructure, S-OIL plans to provide reliable and timely fuel supply services to domestic and global customers.
The launch comes as the maritime industry faces mounting pressure to reduce greenhouse gas emissions under international decarbonization initiatives. Compared with alternative marine fuels such as LNG, methanol, and ammonia, bio bunker fuel offers an immediate solution because it can be used with existing ship engines and fuel systems, minimizing additional capital investment while lowering lifecycle carbon emissions.
"In the bio bunker fuel market, competitiveness depends not only on product quality but also on securing a stable supply of sustainable feedstocks and maintaining an efficient delivery system," an S-OIL official said. "Building on our established bunkering business and the strong infrastructure in the Onsan area, we will continue supplying customers with reliable and competitive low-carbon marine fuels."
S-OIL said the introduction of B30 bio bunker fuel marks another step in expanding its environmentally friendly energy portfolio. The company plans to broaden its lineup of low-carbon fuels while proactively responding to evolving international shipping regulations and supporting customers' carbon neutrality goals through practical energy solutions.
