SK Innovation, Korea’s largest oil refiner, has invested 1 trillion won ($897 million) in order to build a desulfurization facility at its refinery in Ulsan. The decision made, complies with the sulphur cap limit which will be in force from January 2020.
The new desulfurization facility will be capable of producing 40,000 barrels of oil per day, SK energy, a subsidiary of SK Innovation announced.
The company decided to make this investment in order to adapt to the new dynamic that has occurred in the market regarding the low-sulfur fuel for ships, sources said. This fact will lead to increase in fuel price because of a shortage of supply.
Furthermore, as SK energy noted the new facility will make the company stand out because the price of high-sulfur fuels are falling due to stricter environmental regulations.
During the meeting for the creation of the desulfurization facility , the board of directors made the decision to utilize an electronic voting system for shareholders. With this system the shareholders will vote without having to attend the physical meeting, the company said.
SK Innovation is set to begin to use the system at next year’s shareholders meeting.
The stricter environmental regulations regard the 0.5% sulphur cap implementation which will be enforced. Namely, a 0.5% m/m global sulphur cap on fuel oil used by ships will be active as from 1 January 2020, in order to reduce the hazardous emission produced by shipping.