GS Caltex strives to reduce carbon footprint

A GS Caltex plant in Yeosu, South Jeolla Province. / Courtesy of GS Caltex

By Nam Hyun-woo

GS Caltex CEO Hur Sae-hong

GS Caltex is striving to reduce its carbon footprint as part of its commitment to good environmental, social and governance practices.

According to the refiner, Thursday, it has replaced low-sulfur fuel oil (LSFO), which is used for operating facilities at its plant in Yeosu, South Jeolla Province, with liquefied natural gas (LNG).

LNG emits less carbon dioxide (CO2) than LSFO under the same calorific value. Per 1 trillion joules, LSFO emits about 76 tons of CO2 while LNG generates 56 tons.

GS Caltex said it expects the fuel replacement will cut the CO2 emissions of its LSFO-powered facilities by 19 percent, allowing the firm to meet greenhouse gas regulations more effectively. The company also expects it can reduce sulfur and nitrous oxides and other materials that make up fine dust by 30 percent.

Along with the environmental effect, GS Caltex said the LNG replacement will help the company save 11.5 billion won a year in reduced emission costs. After the replacement, the company will sell its inventory of LSFO to improve its balance sheet.

“Energy demand is on a growth trajectory, but conventional supply-centric policies could not halt an increase in greenhouse gas emissions,” GS Caltex CEO Hur Sae-hong said.

“Efficient use of energy is the most eco-friendly and economic way of pursuing the contradicting value of a stable energy supply while and counteracting climate change. LNG replacement is one such effort, allowing the company to cut greenhouse gas emissions efficiently.”

Hur, who became chief executive last year, has set the refiner's corporate philosophy as becoming “the most respected energy and chemical firm,” in order to put greater emphasis on the company's efforts toward the environment.

Along with the fuel replacement, GS Caltex has been making moves for efficient use of energy to reduce its carbon footprint.

In November, the company issued green bonds worth 130 billion won for the first time in its history. With the funds, the company will improve environmental facilities at its plants.

Through the investment, the company seeks to reduce air pollution, improve water resources and safely manage hazardous materials. Last year, the company's sales of eco-friendly products stood at 500 billion won, accounting for 1.5 percent of its total. GS Caltex expects the number will increase following its environmental projects.

“GS Caltex will make greater efforts to operate its business in a more eco-friendly way by building a sustainable ecosystem, ranging from raw material procurement, production, and sales, to consumption and recycling,” a GS Caltex official said.