South Korea Hydrotreated Vegetable Oil Market

South Korea Hydrotreated Vegetable Oil Market Size & Forecast:

• South Korea Hydrotreated Vegetable Oil Market Size 2025: USD 0.59 Billion
• South Korea Hydrotreated Vegetable Oil Market Size 2033: USD 1.219 Billion
• South Korea Hydrotreated Vegetable Oil Market CAGR: 9.50%
• South Korea Hydrotreated Vegetable Oil Market Segments: By Feedstock (Used Cooking Oil, Palm Oil, Soybean Oil, Rapeseed Oil, Animal Fats, Algae Oil, Waste Oils, Others); By Application (Road Transport, Aviation Fuel, Marine Fuel, Industrial Fuel, Power Generation, Commercial Fleets, Rail Transport, Others); By Production Technology (Standalone HVO, Co-processing, Catalytic Hydrotreatment, Renewable Diesel Units, Integrated Refineries, Advanced Biofuel Plants, Hybrid Systems, Others); By End User (Oil Companies, Airlines, Logistics Firms, Marine Operators, Utilities, Industrial Users, Government Agencies, Others).

South Korea Hydrotreated Vegetable Oil Market Summary

The South Korea Hydrotreated Vegetable Oil Market was valued at USD 0.59 Billion in 2025. It is forecast to reach USD 1.219 Billion by 2033. That is a CAGR of 9.50% over the period.

In South Korea's practical context, hydrotreated vegetable oil acts as a drop-in replacement for traditional diesel in coastal shipping, port logistics and industrial standby power. Operators are therefore able to reduce lifecycle carbon emissions and sulfur output while keeping their engines and infrastructure unchanged. The market has thus transitioned over 3-5 years from discrete small-scale trials to integrated supply via established refinery and bunker infrastructure. The market has experienced structural change whereby certified renewable diesel has become incorporated in the fuel mix in shipping industry decarbonization planning and in company Scope 3 reporting. Post 2022 energy market volatility and stringent IMO-based emission standards provided additional impetus by raising the cost and supply security risk profile of diesel fuel and as a consequence refiners and logistics providers are increasingly developing co-processing and import agreements, creating commercialization and revenue in the entire industrial fuel supply chain.

Key Market Insights

• South Korea Hydrotreated Vegetable Oil market is centered around Ulsan and Yeosu refining cluster, which accounts to more than 40% of total supply in the nation for 2025.
• Coastal industrial corridors exhibit fastest growth driven by port electrification, marine fuel transitions via mandates until 2030.
• Co-processed renewable diesel blends represent the major segment in the South Korea Hydrotreated Vegetable Oil market, contributing almost 55% of the 2025 supply blend.
• Neat HVO fuels occupy the second largest segment due to premium maritime compliance.
• Fully refined HVO fuel is the fastest growing segment until 2025-2032, due to the enhanced carbon intensity targets.
• Marine bunkering, has a significant share over 60% in South Korea Hydrotreated Vegetable Oil market due to pressure of decarbonization in shipping.
• Industrial backup power, logistics fleet segment registers the fastest growth among the application sector of smart ports and data centers.
• Shipping operators are major end-users of HVO fuels with shares above 50%, due to mandatory compliance in shipping usingIMO compliant fuel standards.
• Industrial manufacturing, port authorities sector see fastest adoption as they embed low-sulfur fuel transition strategy.
• Strategic benefit arises from long-term maritime fuel contracts and connection with carbon reporting infrastructure.

What are the Key Drivers, Restraints, and Opportunities in the South Korea Hydrotreated Vegetable Oil Market?

Drivers of South Korea Hydrotreated Vegetable Oil Market are strengthened by marine emissions regulation in parallel to IMO's decarbonisation roadmap. Operators and Port logistics companies have binding contracts to cut down their product life-cycle carbon intensity, which led to increased procurement of drop-in marine renewable diesel. The ordering trend shifted from price based decisions to compliance based purchase agreements of fuel, providing higher revenue certainty to the refiners/biofuel suppliers.

The biggest threat to South Korea Hydrotreated Vegetable Oil market is dependence of feedstock import on waste oils and vegetable-based feedstocks for the sector that poses a risk of structural supply volatility in a structurally supply constrained scenario. This is because the Korean agricultural sector is unable to scale up to meet maritime fuel requirements and lack cost competitiveness against diesel fuel in times of high demand due to limitations of scaled price competitively vis-à-vis conventional diesel.

Opportunities to gain revenue are from blending integration in the existing Korean refinery structure particularly in Ulsan clusters. Increased investment in co-processing units and partnership with international renewable fuel producers is offering possibility of scale generation at already built infrastructure without complete refinery refit and hence an avenue for expansion at the same time and can put Korea in the map of bunkering center for Asia.

What Has the Impact of Artificial Intelligence Been on the South Korea Hydrotreated Vegetable Oil Market?

Artificial intelligence is increasingly being incorporated into marine emission controls, and the optimization of renewable fuel logistics within the South Korea Hydrotreated Vegetable Oil Market. Ship owners have turned to AI powered solutions for the real-time monitoring of fuel consumption and for the optimization of hydrotreated fuel blending ratios based on different voyage parameters. These improvements increase overall operational efficiency, and also better support compliance reporting.

Machine learning systems are also being implemented for predictive maintenance in scrubber performance systems and engine calibration units, by forecasting equipment degradation and fuel combustion efficiency; as these factors can significantly influence fuel efficiency and fleet utilization across a shipping company’s fleet, predicting equipment wear can optimize the timing of maintenance in order to decrease unplanned downtime and achieve small, single-digit fuel consumption efficiencies across the long-haul.

Operational improvements are now being enacted through the better prediction of emissions which more closely correlate with port inspection systems, allowing ships to tailor fuel selection to specific circumstances and reduce their penalty for a port state control failure, and improve vessel turnaround times in crowded ports such as Busan.

Adoption of AI technologies is largely held back by poor or disjointed onboard data systems and inconsistent connectivity at sea, resulting in many vessels requiring delayed uploads to their fuel optimization systems, which limits the precision of real-time prediction algorithms.

Key Market Trends

• From 2023-2025 South Korean shipping companies scaled up their purchases of HVO after IMO tied carbon intensity regulations tightened port inspections.
• Korean refinery clusters (Ulsan and Yeosu) ramped up renewable diesel blending instead of pilot co-processing (2020-2022 to 2025).
• The Korean HVO market became more exposed to imported waste oil price fluctuations in 2021 when reliance on local feedstocks was reduced.
• From spot bunker fuel transactions in 2020 South Korean bunker fuel buyers secured long term contracts for HVO supply between 2024 and 2026 to stabilize their fuel costs and emissions.
• Key players such as Neste and Shell expanded renewable diesel cooperation in the Asian market following the 2022 energy crisis and restructured their marine fuel sourcing strategy.
• After 2023 Korean shipping companies, having identified challenges related to assessing emissions from new fuels like HVO, increased usage of digital carbon accounting platforms.
• In 2022-2024 a higher degree of fuel price volatility than in the preceding years increased HVO adoption for those Korean shipping companies seeking more stability through long term procurement of carbon compliant fuel.
• After 2024 port authorities (e.g. Busan) launched more and more bunkering trials of renewable fuels, using HVO as part of broader green port initiative

South Korea Hydrotreated Vegetable Oil Market Segmentation

By Feedstock: 

Circular feedstock inputs like used cooking and waste oils should experience increased adoption as supply chains realign towards lower cost alternatives. Continued stable demand is anticipated for palm and soybean oils, with rapeseed oil and animal fats serving as supplemental choices. The incorporation of algae and other innovative feedstocks will facilitate a long-run improvement in sourcing diversity and supply reliability.

The organized collection of waste oil feedstocks is predicted to rise as industry demand becomes focused on the necessity of compliant and traceable feedstocks. Imports of these raw materials will maintain an elevated profile as a function of domestic insufficiency of feedstock. The interplay of cost management concerns with desired sustainability performance will result in the incremental displacement of expensive virgin oil feedstocks with both virgin-derived but chemically altered and completely recycled material.

By Application: 

As the primary consumption market, road transport will remain a key area for biofuel consumption. Fleet managers will increase their uptake of blended fuels for their fleets to satisfy urban emissions regulations. Aviation fuel will gradually experience its first volume growth through its involvement in trial programs for the purpose of reducing the total carbon emissions of the fleet. In industrial settings, the demand for fuels in heat and power generation will offer solid, long-term demand.

Clean fuels will be deployed for greater uptake in a range of commercial vehicle fleet applications as cost price stability becomes a greater concern for operational considerations than fuel price per gallon. Industrial customers will utilize hydrotreated fuel in back-up fuel storage systems to manage reporting requirements. Increased utilization of biofuels across a range of other minor energy applications will rise at a much slower rate due to regulatory constraints.

By Production Technology: 

Selected standalone HVO plants will grow as companies will need flexibility over output. The commonest means of conversion, co-processing at refineries, will largely continue as this involves less initial investment. Catalytic hydrotreating will be a fundamental component underpinning reliability of supply of conventional fuels. 

Renewable diesel plants and refinery integration will also grow as oil companies increase capacity and scale without the need to replace the core refinery complex. Advanced biofuel and hybrid technology solutions will facilitate the exploration of mixed feedstocks. Focus will shift to technology which enhances yield efficiency and reduces variation in the unit costs. 

Oil majors will play a key role in the distribution of such fuels by blending them into their traditional product portfolio. Airlines will become larger but more incremental purchasers driven by emissions targets. Land-based transport and logistics providers will increasingly utilize these fuels in order to comply with the wishes of their customers. Industrial customers will take up such fuels to reduce emissions and ensure compliance. Power producers will use fuels to ensure security of supply at times of peak demand. Government procurement and policies will drive demand among a small sector of end users with other sectors showing slower adoption.

By End User: 

Oil majors will play a key role in the distribution of such fuels by blending them into their traditional product portfolio. Airlines will become larger but more incremental purchasers driven by emissions targets. Land-based transport and logistics providers will increasingly utilize these fuels in order to comply with the wishes of their customers. 

Industrial customers will take up such fuels to reduce emissions and ensure compliance. Power producers will use fuels to ensure security of supply at times of peak demand. Government procurement and policies will drive demand among a small sector of end users with other sectors showing slower adoption.

What are the Key Use Cases Driving the South Korea Hydrotreated Vegetable Oil Market?

The primary driver of demand for Marine fuel for port-related activity, especially for coastal and domestic shipping, continues to dominate South Korea Hydrotreated Vegetable Oil Market.Shipping companies are forced to cut emissions in compliance with standards that fall within the ambit of IMO while simultaneously relying on existing diesel engines as the industry has not fully upgraded to alter engine design to fully accommodate hydro-treated fuels. 

Hence, it has become viable to immediately adopt these fuels for immediate compliance and continuity on key trade lanes. Back-up power for industrial applications and fleet applications in logistics are now starting to ramp up as many firms are willing to adopt less emission intensive fuels while taking advantage of regulatory ease of reporting. Both port managers and major industrial consumers are now coming around to these alternative sources to improve and regulate their emission levels even as they continue to face varying energy demand patterns during peak loads. 

Newly identified applications include: backup power at data centres, partial use in limited aviation fuel blends in connection with global reduction measures. These are more emerging/nascent applications, but they represent significant potential as regulatory incentives and corporate environmental initiatives increase their adoption.

Which Regions are Driving the South Korea Hydrotreated Vegetable Oil Market Growth?

South Korea Hydrotreated Vegetable Oil Market - Growing Adoption Fueled by Ulsan & Busan Hydrotreated Vegetable Oil Market: Overview The South Korea Hydrotreated Vegetable Oil Market is expected to reach $674.3 million by 2033, growing at a Compound Annual Growth Rate of 8.5%. Download this report: South Korea Hydrotreated Vegetable Oil Market Download our complimentary analysis and learn about top industry players and business growth trends South Korea Hydrotreated Vegetable Oil Market Dynamics Market Growth Dynamics, Regional Overview and Forecast, Competitive Landscape, and Segmentation are the factors fueling the growth of the South Korea Hydrotreated Vegetable Oil Market. 

Leading Region Ulsan leads the South Korean market due to extensive refinery integration, massive fuel processing infrastructure for steady production of hydrotreated fuel, and a clear policy framework to achieve industry decarbonization goals that incentivizes co-processing of renewable materials. Heavy reliance on petrochemical clusters, along with established bunker fuel supply chains, solidifies the region's position. Other Important Region Busan emerges as another major region due to the stable maritime trade and consistent shipping operations supporting it. In contrast to Ulsan, Busan primarily acts as a distribution center and major consumption point rather than a production hub, as ships and logistical activities create a constant demand for fuel. 

Shipping owners have consistently maintained demand for bunker fuels, even during price swings in the international market. The sustained fuel demand can be attributed to consistent operational support and predictable regulation execution. Fastest Growing Region Incheon is the fastest growing region owing to increased green port infrastructure development and a steady stream of cleaner fuel tests following 2024. Recent investments in the area include new bunkering services and pilot programs utilizing low-carbon maritime fuel, expanding demand among local operators and associated businesses.

Who are the Key Players in the South Korea Hydrotreated Vegetable Oil Market and How Do They Compete?

The competitive landscape of South Korea Hydrotreated Vegetable Oil Market is somewhat consolidated with global renewable fuels players competing with integrated refinery players. Competition is not only among volume but also on supply confidence, certification norms and integration with marine fuel networks. Well resourced refiners in South Korea maintain their market share by leveraging access to infrastructure, while global incumbents grow through complex supply and blending alliances.

Neste is offering long-term contracts with marine fuel customers for low-cost renewable diesel supply, providing a competitive advantage in certified low-carbon fuels supply. Shell is leveraging its global bunkering presence and integrated trading network that ties Asian markets to the rest of the world. TotalEnergies is developing a flexible portfolio of biofuels and entered into a partnership with refineries to develop dedicated blending capacity.

Eni stands out owing to investments in renewable refining technology with enhanced feedstock flexibility and yield. Chevron increases its footprint by joint ventures and renewable-diesel supply agreements for the industrial and marine market. Domestic players like SK Energy and GS Caltex benefit from fully integrated South Korean refining complexes and domestic port distribution networks for accelerated commercialization of hydro-treated fuel blends.

Company List

• Neste
• ENI
• TotalEnergies
• Repsol
• Chevron
• BP
• Shell
• SK Energy
• GS Caltex
• S-Oil
• Hyundai Oilbank
• Honeywell UOP
• Phillips 66
• Marathon Petroleum
• Valero

Recent Development News

In August 2025, LG Chem and Enilive announced the groundbreaking of South Korea’s first hydrotreated vegetable oil and sustainable aviation fuel production facility at Daesan Chemical Complex. The project will process around 400,000 tons of renewable feedstock annually, strengthening domestic low-carbon fuel supply chains.

Source: https://www.eni.com/

In August 2025, LG Chem and Enilive began construction of a joint venture biorefinery aimed at producing HVO and SAF using waste oils and residues. The facility is expected to mark South Korea’s first large-scale renewable diesel production hub, reducing reliance on imported fossil diesel.

Source: https://renewablesnow.com/

What Strategic Insights Define the Future of the South Korea Hydrotreated Vegetable Oil Market?

The South Korea Hydrotreated Vegetable Oil Market is structurally coalescing around an integrated renewable fuels ecosystem where refining assets, maritime bunkering networks and carbon reporting standards work in tandem within a value chain. Fueling this in the next 5-7 years will be stricter life-cycle emissions requirements, coupled with a pivot by shipping operators towards locking into long-term low-carbon fuel supply contracts, instead of short-term bunkering needs. This should gradually displace HVO fuels as an ‘optional extra’ and position them more as an input tied to compliance regulations.

The more opaque risk to the market will be feedstock concentration, as reliance on sourced and imported animal and vegetable waste feedstocks will leave the market vulnerable to supply shortages and pricing impacts when biofuel demand surges internationally. This risks delaying the take-up of such fuels even with strong regulatory impetus.

An incipient opportunity exists within Incheon's growing green port infrastructure, where early bunkering pilots and carbon emissions tracking solutions are gaining traction and scale. This offers a key point of early market advantage for fuel providers who can align bunkering with verified carbon accounting. The key to navigating the South Korean market will be for market players to focus on securing long-term feedstock arrangements and key port-based partnerships to ensure supply assurance before the space is dominated by only a few integrated players.

South Korea Hydrotreated Vegetable Oil Market Report Segmentation

By Feedstock

• Used Cooking Oil
• Palm Oil
• Soybean Oil
• Rapeseed Oil
• Animal Fats
• Algae Oil
• Waste Oils

By Application

• Road Transport
• Aviation Fuel
• Marine Fuel
• Industrial Fuel
• Power Generation
• Commercial Fleets
• Rail Transport

By Production Technology

• Standalone HVO
• Co-processing
• Catalytic Hydrotreatment
• Renewable Diesel Units
• Integrated Refineries
• Advanced Biofuel Plants
• Hybrid Systems

By End User

• Oil Companies
• Airlines
• Logistics Firms
• Marine Operators
• Utilities
• Industrial Users
• Government Agencies