South Korean refiner S-Oil has commenced the supply of bio marine fuel blended to a 30% biofuel content — known as B30 very-low-sulphur fuel oil (VLSFO) — as part of its effort to expand its low-carbon fuel portfolio in response to growing decarbonisation pressures within the international shipping industry.

The company, headed by chief executive Anwar Al-Hijazi, says it has established an operational value chain within the Ulsan region of South Korea, covering raw material procurement, blending, storage and supply. S-Oil claims this integrated approach minimises logistics during the manufacturing process and enhances supply efficiency.

Bio marine fuel is produced by blending sustainable biofuels with conventional VLSFO. The blend can be used without vessel modifications, making it a practical option for shipowners seeking to comply with environmental regulations set by the International Maritime Organization (IMO) and the European Union (EU).

The company links VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure located in the wider Ulsan area, completing the entire supply process within a single region.

S-Oil notes that Ulsan Port sees demand for bio marine fuel centred on car carriers, positioning the company to supply key customers from its existing bunkering operations.

"In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages. Based on the competitiveness of our existing bunkering business and the supply infrastructure in the Onsan region, S-Oil plans to supply stable and competitive low-carbon fuel to our customers," an S-Oil official said.