Launch of Eco-Friendly Ship Fuel Infrastructure Fund to Provide Strong Support for Future Ship Fuel Demand

 

- Holding the investment signing ceremony for the Eco-Friendly Ship Fuel Infrastructure Fund

 

 The Ministry of Oceans and Fisheries (MOF; Minister Kang Do-hyung) and Korea Ocean Business Corporation (KOBC; CEO Ahn Byung-gil) will hold the ceremony for the launch of the Eco-Friendly Ship Fuel Infrastructure Fund (“Infrastructure Fund”) and signing of the first fund investment at 3:00 PM on Tuesday, January 14, 2024 at the Conrad Seoul Hotel.

 

 In line with the International Maritime Organization’s (IMO) goal of achieving carbon neutrality in international shipping by 2050, the ability of a port to supply eco-friendly ship fuel has become a key factor determining its competitiveness. Accordingly, MOF and KOBC plan to establish a KRW 1 trillion Infrastructure Fund by 2030 to develop an eco-friendly ship fuel supply chain actively.

 

 The Infrastructure Fund will provide practical financial support for the construction of eco-friendly fuel storage facilities in ports in Korea and enable shipping companies to build bunkering vessels dedicated to supplying these fuels. Specifically, it will invest KRW 600 billion of the KRW 1 trillion fund to build port storage facilities capable of supplying LNG, methanol, and ammonia by 2030, with the remaining KRW 400 billion to be invested in the construction of 4 LNG and ammonia bunkering vessels.

 

 These investments are expected to ensure the stable supply of eco-friendly fuel for domestic ships and facilitate stable fuel supply for foreign vessels calling at Korean ports.

 

  The signing event will be attended by Minister Kang Do-hyung along with representatives from KOBC, Korea Development Bank, Kyobo Life Insurance, Woori Asset Management, and Hyundai Oil Terminal, which are all participants in the fund. During the event, agreements for the establishment of the first fund, including the Basic Investment Agreement and the Loan Agreement, will be signed.

 

 Selected as the first project, the Ulsan Hyundai Liquid Cargo Terminal Expansion Project has total project cost of KRW 240 billion, KRW 130 billion of which will be invested through the Infrastructure Fund and used to support the supply of methanol fuel for domestic and international vessels.

 

 Moreover, the government plans to reinforce its capacity to supply LNG by completing the second project—the Yeosu Myodo LNG Hub Terminal Project—and identify additional follow-up projects to meet the growing demand for eco-friendly fuels.

 

 "The Eco-Friendly Ship Fuel Infrastructure Fund will be a key driving force in accelerating the green transition of our shipping and port industries. The government will leverage the Infrastructure Fund to expand the eco-friendly ship fuel supply infrastructure flexibly, ensuring that our ports can continue to secure a competitive edge as global hub ports,” Minister Kang Do-hyung said.