Ulsan CLX, also known as the SK Ulsan Complex, is embarking on its “second leap” by aiming to achieve carbon neutrality and take the lead in the energy transition amidst the climate crisis. Originating as Korea’s first oil refinery in 1964, Ulsan CLX has completed preparations for this new phase of its operations. With the goal of breaking away from the crude oil focus, Ulsan CLX is set to become the world’s first plastic recycling complex, with construction scheduled to begin next month.
The establishment of Ulsan CLX in 1964 marked the birth of Korea’s domestic energy industry. As visitors walk through the complex, they can witness its historical significance and envision its environmentally friendly future. The refinery, which refines an average of 40,000 barrels of crude oil per day, has grown over the years and now processes an astounding 840,000 barrels per day. This accounts for about 40% of the country’s daily consumption, with 60% of the processed oil being exported abroad.
A crucial aspect of Ulsan CLX is its extensive port infrastructure. With eight piers for importing crude oil and shipping refined oil, the complex serves both domestic demand and international trade. These piers witness about 800 domestic and foreign ships passing through each year. Through an intricate system of pipes, crude oil is efficiently transported from oil tankers to storage tanks, which can hold up to 20 million barrels, ensuring a stable supply of oil for over a week.
Ulsan CLX’s operations are made possible by its innovative approach to factory operation and maintenance (O&M). By utilizing advanced automation and monitoring technologies, the complex is able to manage its large-scale facilities with a relatively small workforce. Real-time monitoring and prompt action in the control room enable efficient operations. Regular maintenance further enhances efficiency and stability. Cutting-edge technologies such as the High-Altitude Crawler Robot and Intelligent Pig are also employed to examine the storage tanks, pipes, and other infrastructure, enabling a smart and effective approach to maintenance.
Looking towards the future, Ulsan CLX is taking a decisive step towards carbon neutrality by establishing the Ulsan Advanced Recycling Cluster (ARC). As over 130 countries commit to carbon neutrality, SK Group, the parent company of Ulsan CLX, recognizes the need to transition from a crude oil-based energy industry. The Ulsan ARC, set to begin construction next month, will be implemented on a 215,000-square-meter area within CLX and is expected to be completed by 2026. With an investment of 1.8 trillion won, the ARC will pioneer three main waste plastic recycling technologies: pyrolysis, high purity PP extraction, and depolymerization. These chemical recycling technologies surpass the limitations of physical recycling, allowing for the processing of various waste plastics, irrespective of contamination level or color.
CEO of SK Geocentric, Kim Ki-hyun, emphasizes the logistical strength of Ulsan ARC and its ability to import and process all waste plastics in one location. This signifies a significant advancement in the upcycling industry, as three major chemical recycling technologies are implemented simultaneously for the first time worldwide. With increasing regulations on waste management, Ulsan ARC is poised to provide a viable solution for the pressing domestic waste problem.
By embracing a sustainable and environmentally friendly future, Ulsan CLX is not only redefining its own operations but also leading the way towards a greener industry and addressing the urgent climate crisis.
CLX realizes a ‘smart tool’ through the use of advanced O&M and technology
New food prepared for 60 years since its implementation… The goal of breaking away from the focus of crude oil
The world’s first plastic recycling complex will start construction next month
‘SK Ulsan Complex’ (hereinafter referred to as Ulsan CLX), which began as Korea’s first oil refinery in 1964, has completed preparations for its ‘second leap’. The plan is to achieve carbon neutrality and lead the future market in the energy transition period facing the climate crisis.
Ulsan CLX, which has led the domestic energy industry, was visited to look at the past and present of the petrochemical industry and look forward to its environmentally friendly future.
Ulsan CLX where past and present coexist
A panoramic view of Ulsan CLX can be seen from the entrance. Photo = Reporter Kim Ha-neul
When I entered Ulsan CLX in Nam-gu, Ulsan Metropolitan City on the 13th, the tall chimneys and pipes stuck in large facilities caught my eye. Since this was the first establishment in Korea, we were able to find equipment showing signs of age.
Construction of the first oil refinery began in 1962, when Ulsan was designated as a special industrial zone, and was completed in 1964. It is the oldest refinery in Korea and refines an average of 40,000 barrels of crude oil per day.
Since then, Ulsan CLX has grown by securing various processing and storage facilities and currently processes 840,000 barrels per day. This equates to around 40% of domestic daily consumption. Of these, 60%, or 500,000 barrels, are processed and exported abroad.
Ulsan Outer Port Pier CLX 3 as seen from the Ulsan Port Authority observatory. Photo = Reporter Kim Ha-neul
Ulsan CLX has eight piers for importing crude oil and shipping refined oil. It is divided into Piers 1 and 2 of the inner port, which deal with domestic demand, and Piers 3 to 8 of the outer port, which are used for import and export. Around 800 domestic and foreign ships pass through CLX each year via these piers.
Crude oil is unloaded from the heads of oil tankers to the storage area through pipes that extend like capillaries. There are 33 tanks of different capacities, including 50,000, 250,000, 500,000, and 750,000 barrels, which can store up to 20 million barrels. This is equivalent to enough oil for the entire population to use for more than a week.
Ulsan CLX 2nd upgrade facility (No. 2 FCC) member. A raw materials storage tank can be seen to the left of workers moving into the workplace. Photo = Reporter Kim Ha-neul
Ulsan CLX has about 3,000 employees. The number of employees working at the same time in 4 groups and 2 shifts is only about 700.
The reason why it is possible to operate a factory complex three times the size of Yeouido with about 700 people is because of ‘Factory Operation and Maintenance (O&M)’ technology.
First, by automating and monitoring the process, large-scale facilities can be managed with a small number of people. The monitoring situation is checked in real time in the control room and action is taken when variables occur. In addition, regular maintenance is carried out regularly (1 year) or a large number (3-4 years) to maintain efficiency and stability.
In addition, a ‘smart tool’ was realized through the use of cutting-edge technologies such as ‘High-Altitude Crawler Robot’, which examines the outer wall of the storage tank and the narrow pipes, and ‘Intelligent Pig’, which examines submarine pipes with sensors ultrasonic.
Ulsan ARC, leading the ‘carbon neutral’ future
Ulsan ARC was expecting an aerial view. Photo = SK Innovation
SK Group predicted the end of the crude oil-based energy industry as more than 130 countries declared carbon neutrality. Previously, in 2021, it set a carbon neutrality goal for the first time as a domestic company that switched the fuel for the Ulsan CLX combined heat and power plant from C bunker oil to LNG, an environmentally friendly fuel.
The industry’s first ‘Life Cycle Assessment (LCA)’ has recently been completed on all products. LCA is a method of evaluating the potential environmental impacts during the production process in accordance with international standards. It is useful for planning and implementing carbon neutrality in more detail.
The SK Group went one step further. In order to lead rather than follow carbon neutrality, we decided to create the world’s first complex of three main waste plastic recycling technologies.
SK Geocentric PM Ki-Hyeon Kim presents the Ulsan ARC site. Leveling work is underway ahead of full-scale construction. Photo = SK Innovation
The Ulsan Advanced Recycling Cluster (ARC) will start construction next month on an area of 215,000 m2 within CLX and is expected to be completed in 2026. A total of 1.8 trillion won will be invested in the project, which is equivalent to the size of 22 international standard football pitches.
The three main source technologies used at ARC are chemical recycling technologies such as pyrolysis, high purity PP extraction, and depolymerization, which are evaluated to exceed physical recycling limits. All technologies are implemented through collaboration with partners such as Plastic Energy, Pure Cycle Technology, and Loop Industries.
SK Geocentric PM Jihoon Park explains depolymerization technology. Photo = Reporter Kim Ha-neul
Physical recycling is difficult to recycle again and again because only limited plastic waste, such as transparent PET bottles, is cut into small pieces and processed. However, chemical recycling can process almost all waste plastics, including ramen bags, gunny sacks, and PET bottles, regardless of contamination level, nature or color.
Kim Ki-hyun, CEO of SK Geocentric, said, “Ulsan ARC is characterized by its logistical strength of being able to import and process all waste plastic in one place,” adding, “It has a symbolic meaning of leading the industry upcycling by implementing three major chemical recycling technologies simultaneously for the first time in the world.” “You will have it too,” he explained.
An SK Group official said, “Landfilling waste within the metropolitan area will be banned in 2026, and it will not be possible to directly landfill household waste throughout the country from 2030. We expect Ulsan ARC to be an alternative to solve the domestic waste problem.”
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