SK Chemicals to Supply Biodiesel to Trafigura

South Korea's SK Chemicals will supply European trader Trafigura with a total of 60,000t of palm methyl ester, a palm oil-based biodiesel, it has been revealed.

The supply from the South Korean company will comprise of monthly 5,000t shipments under a $48m deal starting in January 2010, the company said.

SK Chemicals is planning to expand its biodiesel capacity, which is operating at 120,000t/yr capacity with the recently completed expansion of its Ulsan refinery.

The company produces biodiesel by using palm-based feedstock from either refined, bleached and deodorised (RBD) palm olefin or RBD palm oil.