Hyundai Heavy Industries Group’s refining affiliate Hyundai Oilbank said it has been bolstering efforts in developing next-generation energy, it said in a statement Wednesday.

The refiner said it has been constructing a biodiesel production plant with an annual production capacity of 130,000 metric tons in Seosan, South Chungcheong Province, since last year, as part of its “White Bio” project. The plant is expected to be completed by 2023.

White bio refers to carbon reduction projects which use plant matter to create energy sources or chemical materials.

Hyundai Oilbank’s white bio initiative is distinctive from that of other companies as it uses recycled cooking oil, oil sludge and discarded palm fruits instead of the standard corn, beans and palm, the company said. The use of these recycled materials decreases deforestation, it added.

The company also launched its three step white bio road map in May. Under the first stage, Hyundai Oilbank will complete the construction of its factory in Seosan, and transfer part of the plant’s production to manufacturing hydrogenated vegetable oil (HVO).

Stage two will be exporting the created HVO, while in stage three, the company plans to use by-products of its white bio products to launch new biochemical projects by 2026. By 2030, the company expects to have created a white bio ecosystem which is capable of producing 1 million tons annually.

Meanwhile, the company has also been working with Danish energy firm Topsoe since last year to co-develop a new energy source based on hydrogen and carbon dioxide, dubbed “E-fuel.” It has also become the first local refiner to manufacture high-purity hydrogen for hydrogen vehicles.

By Lee Seung-ku (seungku99@heraldcorp.com)