GS Caltex pioneers in renewable energy

2nd largest refiner striving to find non-oil business models

By Kim Tae-gyu

Staff reporter

GS Caltex, South Korea's second-largest refiner, is betting its future on developing new materials and eco-friendly technologies, including fuel cells, thin-film batteries and plasma-based waste recycling.

In order to achieve its bold plans for these, the Seoul-based company established a new division earlier this year under the direct control of its Chief Executive Officer Hur Dong-soo.

The country's first private oil firm said Friday that it would further accelerate its efforts on the initiatives via brisk research at its technology center, which accommodates around 150 top-tier scientists.

GS Caltex started to delve into fuel cells two decades ago in preparation of the so-called hydrogen era when such energy systems will lead to near-zero carbon dioxide emissions.

Fuel cells are dubbed emission-free alternatives to conventional engines. Hydrogen and oxygen are combined in a fuel cell so as to produce electric energy.

Their byproduct is the combination of the two - water.

GS FuelCell, a 100 percent-owned affiliate of GS Caltex, has commissioned pilot tests of its 1-kilowatt and 3-kilowatt home fuel cell systems and plans to install them in some Seoul apartments in August. It has already developed a 50-kilowatt system and is working on a 100-kilowatt product.

It said that the cells are sufficiently efficient compared to existing electricity and heat generators, and are good enough to meet the state target of expanding home fuel cells to 10,000 households by 2012.

Thin-film batteries, is touted as a next-generation cash cow for GS Caltex, which is looking to commercially release them for the first time in Asia. Its subsidiary GS NanoTech is presently taking charge of that goal.

Another unit, GS Platech, has spearheaded the promising energy-from-waste business on the back of the leading-edge plasma technology.

"Traditional incinerators produce heavy metals and dioxins. With plasma, however, the amount of such toxic substances is reduced by 90 percent," a GS Platech official said. "In addition, the plasma format creates synthesis gases, which can be recycled to generate electricity."

GS Platech is seeking to build plasma generating facilities, which can dispose of 100 tons of waste every day, before jacking up the daily capacity to 300 tons along with local partners.

CEO Hur said on the company website that the firm will continue to expand its business horizons in the energy segments while keeping its focus on quality products.

"GS Caltex has the ambition to become a global total energy service leader through expansion into all energy sectors including electric power, city gas, exploration and production, convenience retail, e-business and new and renewable energies," Hur said.

"We at GS Caltex will exert every effort to provide the finest quality products and services to our customers to achieve our vision of being a leader in providing a total energy service."