SK Energy exports sustainable aviation fuel to Europe

SK Energy, which owns South Korea’s largest oil refinery located in Ulsan , has achieved a significant milestone by exporting sustainable aviation fuel (SAF) to Europe. This step comes as the European Union (EU) mandates the blending of at least 2% SAF in aviation fuel starting in January 2025.

SAF is an advanced biofuel derived from renewable sources such as waste cooking oil and animal fat, offering up to an 80% reduction in carbon emissions compared to conventional aviation fuel. SK Energy’s Ulsan facility began commercial SAF production in September 2024, using co-processing technology that integrates bio-material supply lines with existing petroleum processes. The facility currently produces around 100,000 tonnes of low-carbon products annually.

Lee Chun-gil, general manager at SK Energy’s Ulsan Complex, highlighted the company’s plans to expand SAF production and exports in response to growing global demand. “We will closely monitor SAF policies and demand fluctuations globally while leveraging our mass production system for further exports,” he said.

The global SAF market is experiencing rapid growth due to commitments like the International Air Transport Association’s (IATA) carbon neutrality plan, which targets a 50% reduction in the aviation industry’s emissions by 2050. The EU has set ambitious goals, requiring SAF blending rates to increase to 6% by 2030 and 70% by 2050.

This initiative is part of a broader effort in South Korea to promote SAF adoption. Starting in 2027, the country will require a 1% SAF mix for all international flights. Other Korean refiners, including GS Caltex, HD Hyundai Oilbank, and S-Oil, are also advancing their SAF capabilities.

GS Caltex recently exported SAF to Japan, while HD Hyundai Oilbank and S-Oil have established partnerships to supply SAF for international and domestic flights. These efforts collectively underscore Korea’s growing commitment to sustainable aviation solutions.