KG Eco Solutions to Supply Marine Biofuel to Three Domestic Oil Refiners

KG Eco Solutions has successfully secured three major domestic oil refiners as clients for its marine biofuel, marking a strategic expansion of its business. The company is shifting its focus from primarily supplying biofuels for power generation to the more lucrative market of supplying oil refiners.

Recently, KG Eco Solutions signed a contract to supply hundreds of tons of high-quality marine biofuel to a major domestic oil refiner between late July and August. This agreement brings the total number of major refiners supplied by KG Eco Solutions to three out of the four largest in South Korea. The company highlighted its ability to meet the stringent quality verification and supply standards demanded by these refiners, thereby expanding its marine biofuel supply chain.

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Through supply contracts with three major domestic oil refiners, our quality and technological competitiveness have been recognized.

Supplying biofuels to refiners requires higher quality specifications and stable supply capabilities compared to products for power generation. KG Eco Solutions has invested in its research and development, establishing a dedicated R&D organization this year to develop blending technologies and improve quality across different raw materials. They have also strengthened production process optimization and quality management systems, which they credit for the recent supply contracts.

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We will expand marine biofuel supply by strengthening research and development and production technology capabilities.

Starting in August, KG Eco Solutions plans to significantly increase its biofuel supply volume to refiners. To meet the growing demand from these major companies, the company will secure internationally certified raw materials and ensure stable production processes. This expansion into the refiner market is expected to improve KG Eco Solutions' business portfolio, as the refiner supply market offers more stable, long-term relationships compared to the power generation market, which can experience significant fluctuations in sales and profitability based on tender results.

Park Saeng-geun, CEO of KG Eco Solutions, stated that the contracts with the three major refiners validate the company's quality and technological competitiveness. He added that they will continue to expand marine biofuel supply by strengthening R&D and production technology capabilities. The company aims to increase the proportion of high-value products, respond to customer volume expansion requests, and ultimately enhance performance and shareholder value.

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We will respond to customer volume expansion requests and strengthen our profit-oriented business portfolio to lead to performance improvement and shareholder value enhancement.