SK Energy to offer green bonds for funding IMO 2020 refinery project
SK Energy, the oil refining subsidiary of SK Innovation, on Monday (9 September) said it is planning to issue green bonds to help fund an IMO 2020 related refinery project to produce low sulphur marine fuels.
The company intends to issue at least 300 billion won ($251.3 million) in green bonds on 26 September; the volume could increase to 500 billion won depending on the demand forecasting results.
It plans to use the funds raised by Green Bond to build a Vacuum Residue Desulfurisation (VRDS) unit at its Ulsan Complex. The unit will be able to remove sulphur content from marine fuels to produces low sulphur fuel oils that emit less pollution.
“Demand for low sulphur oil is expected to explode next year,” it forecasts.
“From the beginning of next year, the International Maritime Organization (IMO) will implement the 'IMO 2020' regulation, which will significantly reduce the sulphur content in ship fuels from 3.5%, which is currently acceptable.
“As a result, all vessels should be equipped with low sulphur oil or self-removing sulphur [sic].”
SK Energy plans to produce 40,000 barrels of low-sulphur oil per day when the VRDS is completed early next year, and expects to earn between 200 and 300 billion won annually from the unit.
Photo credit: SK Energy
Published: 10 September, 2019
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