Seoul: GS Caltex Corp., the Republic of Korea’s second-largest refiner by sales, announced its plans to explore the production of biofuel by recycling waste from palm oil mills in Indonesia. The company aims to address greenhouse gas emissions through this initiative by utilizing palm oil mill effluent (POME) to create bio-based raw materials while cutting down on methane emissions, a significant driver of global warming.

According to Lao News Agency, POME in Indonesia is generally treated in open-air ponds, which, although they break down organic matter, also lead to the release of substantial amounts of methane into the atmosphere. GS Caltex has stated that it will undertake a detailed feasibility study over the next six months to evaluate the project’s potential in reducing greenhouse gases and its economic feasibility.

The results of the feasibility study will guide GS Caltex in deciding the scale and timing for establishing Indonesia’s first POME oil processing facility. The processed POME oil is expec
ted to be transformed into sustainable aviation fuel (SAF) and other biofuels. As the world’s largest producer and exporter of palm oil, Indonesia presents a strategic location for this initiative.

GS Caltex has also been chosen to participate in the government’s 2025 greenhouse gas reduction project feasibility study support program. This program encourages Korean companies to engage in overseas emission reduction efforts, aligning with the Republic of Korea’s commitment to its 2030 Nationally Determined Contribution (NDC) to climate change. The current NDC plan targets a 40 percent reduction in greenhouse gas emissions from 2018 levels by 2030.