South Korea announces $680 million investment for ammonia and methanol bunker fuels

South Korea's Ministry of Oceans and Fisheries has launched a KRW 1 trillion ($680 million) infrastructure fund to accelerate the transition to green fuels in the Korean shipping industry.

PHOTO: Aerial view of gas tanker at Ulsan Port in South Korea. Getty Images

Under the "Eco-Friendly Ship Fuel Infrastructure Fund", the government will invest the earmarked amount on promoting the use of LNG, ammonia and methanol as bunker fuels.

It has allocated KRW 600 billion ($410 million) from the fund to be invested by 2030 in developing LNG, methanol and ammonia storage facilities across South Korean ports.

The remaining KRW 400 billion ($270 million) will be used to construct four LNG and ammonia “bunkering-only” vessels, according to the ministry.

The Ulsan Hyundai Liquid Cargo Terminal Expansion Project will be the first to receive funding under this program. Total cost of the project is KRW 240 billion ($160 million), out of which KRW 130 billion ($89 million) will be provided through the infrastructure fund.

The project aims to expand methanol storage capacity at South Korea’s Ulsan port, with the first phase set to begin operations in 2026. This expansion is expected to meet the demand from both domestic and international methanol-capable ships calling at Ulsan, the ministry added.

By Konica Bhatt

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