- Completion of palm oil refining facility in Balikpapan, Indonesia, on November 19
- Commencement of refined palm oil production for biodiesel feedstock and edible oil
- Establishment of an integrated value chain from feedstock sourcing to biodiesel manufacturing
On November 19, GS Caltex (CEO Saehong Hur) held an inauguration ceremony in Balikpapan, Indonesia, for the palm oil refining facility established by ARC (AGPA Refinery Complex), a joint investment venture with POSCO International.
The ceremony was attended by over 100 participants, including GS Caltex CEO Saehong Hur; POSCO International CEO Kye-in Lee; executives from both companies; representatives from the Indonesian Ministry of Energy and Mineral Resources, Ministry of Investment, and the City of Balikpapan; members of the Embassy of the Republic of Korea in Indonesia; and industry and local community stakeholders.
GS Caltex and POSCO International established ARC in Indonesia, the world’s largest producer of palm oil, in 2023. Through this joint venture, the two companies invested a total of KRW 260 billion to build a palm oil refining facility on a 300,000 m² site within the Balikpapan Industrial Complex in East Kalimantan. Construction began in May last year, and the facility was completed this month.
The newly completed ARC facility processes crude palm oil (CPO) into refined palm oil products, including biodiesel feedstock and edible oils, and has an annual refining capacity of approximately 500,000 tons.
POSCO International supplies ARC with crude palm oil sourced from farms in Indonesia, enabling the production of refined palm oil. The resulting output will be sold not only in Indonesia but also in neighboring markets such as Korea and China. GS Caltex will leverage its process operational expertise to enhance ARC’s efficiency and supply the refined palm oil used as biodiesel feedstock to the Korean market.
With the completion and start of operations at the new facility, GS Caltex has secured a stable supply of biodiesel feedstock, including palm stearin, and established an integrated biodiesel value chain spanning raw material sourcing through to product manufacturing and sales.
At the ceremony, GS Caltex CEO Saehong Hur emphasized, “The completion of the ARC palm oil refining facility represents a tangible achievement in our Green Transformation strategy and a meaningful milestone in strengthening GS Caltex’s position in the global bio market.”
He added, “Alongside our low-carbon business initiatives in hydrogen, CCUS, and plastic recycling, we will continue strengthening our competitiveness across the bio value chain to further solidify the foundation for sustainable growth.”
