GS Caltex Steps on the Gas to Tap Renewable Energy Industry

Begins a JV project to produce carbon materials for EDLCs with Nippon Oil Corp.

GS Caltex is accelerating its bid to tap the renewable energy industry as one of its new growth engines. GS Caltex has begun a project to construct a facility to manufacture carbon materials for electric double layer capacitors (EDLC) in a joint venture with Japan's top oil firm, Nippon Oil Corp.
GS Caltex Chairman and CEO Hur Dong-soo, Nippon Oil Corp. Chairman Fumiaki Watari, Gyeongsangbuk-do Gov. Kim Kwan-yong and Gumi Mayor Nam Yu-jin were at hand for the groundbreaking ceremony of the Fourth National Industrial Complex in Gumi on May 19.
GS Caltex and Nippon Oil set up a joint venture called Power Carbon Technology in accordance with a deal the two companies signed last July on the production of carbon materials for high-end energy storage devices.
The two companies succeeded in developing a technology to turn out value-added carbon materials for EDLCs, using coke, a by-product of a process for refining crude oil. The joint venture will dedicate a production facility capable of producing 300 tons annually by the end of this year and begin commercial operations next April.
They plan to boost joint investments to an aggregate $100 million to expand the production capacity of the plant to 900 tons by 2015 when the value of the global EDLC market is forecast to balloon to 1.2 trillion won. When the facility opens, it will produce carbon materials for EDLCs to substitute for Japanese imports and then export them, thus bringing about 200 billion won in trade imbalance improvement and reinvigorating the local economy in the provincial area through the creation of new investments and new jobs.
Chairman Hur said in a speech at the groundbreaking ceremony that the production and distribution of next-generation energy storage device EDLCs using high-performance carbon materials will be at the frontline of making Korea a green powerhouse, and GS Caltex will redouble its efforts for the refinery to evolve into the world's representative environmentally-friendly company. Earlier, the GS group announced an aggressive business strategy designed to realize a mid-term vision by 2010 despite the current economic downturn.
The group said it decided to set aside 2.3 trillion won in investments for 2009, nearly a 10 percent increase over the 2.1 trillion won the group invested during 2008, in order to concentrate on its mainstay businesses including the energy sector. Even if the business situation gets worse, this is designed to shore up its growth potential by continuing to make investments into upgrading facilities.
In particular, 1.7 trillion won will be funneled into GS Caltex's project to construct the No. 3 Heavy Oil Upgrade facility, overseas petroleum exploration projects and GS PES's energy projects. In order to build up a solid foundation for growth in the energy sector, GS Holdings, the holding company of the GS Group, and GS Caltex will play central roles in implementing projects to explore crude oil mining fields overseas. GS Caltex will continue to make investments in overseas petroleum exploration projects with the goal of securing crude oil equivalent to 10 percent of its refining capacity through overseas petroleum exploration. GS Caltex newest buzzword is "green management," which is designed to place top-priority on its commitment to preserving the environment while fostering new and renewable energy sources as its next-generation growth engines.
Korea's second largest refinery is focusing on the development of fuel cells for both households and commercial facilities by capitalizing on the expertise related to fuel cells the company has so far accumulated, while striving to expand such business areas as hydrogen fueling stations for fuel cell vehicles. The company has succeeded in yielding tangible results in its research of carbon materials, key components of EDLD, a kind of second battery, and yeasts for producing biobutanol, considered one of the next-generation bio-fuels.

TOTAL ENERGY LEADER
Chairman Hur revealed ways to overcome economic difficulties while delivering a message at a ceremony to celebrate the company's 42nd anniversary at the GS Tower Building in Yeoksam-dong, Gangnam-gu, Seoul, on May 18.
Reflecting on a 42-year corporate history, he said, "GS Caltex has contributed to the nation's economic development by taking the lead in a stable supply of energy, and despite numerous hardships, we have come from strength to strength to become a global company exporting more than half of our products based on world-class petroleum, aromatic compound production facilities and upgraded installations.
"In an effort to ensure sustainable growth despite the business uncertainties," he said,"GS Caltex has made massive investments including 1.7 trillion won it set aside this year for the No. 3 Heavy Oil Upgrade facility."
With the inauguration of the No. 3 HOU facility slated for next September, he said, GS Caltex will likely see its bottom line improving sharply. "We have the potential to translate the current crisis into opportunity, and GS Caltex will throw its heart and soul into achieving our vision of becoming the most profitable total energy service provider in Korea," he added. nw

GS Caltex Chairman and CEO Hur Dong-soo