SK Energy, South Korea’s largest refiner and a subsidiary of SK Innovation, has announced a significant breakthrough with the completion of the nation’s first dedicated Sustainable Aviation Fuel (SAF) production line. This milestone, marked by the use of advanced co-processing technology, positions SK Energy as a leader in the growing global SAF market. The new facility is set to commence commercial production next month, creating a vital shift toward cleaner aviation fuel and contributing to South Korea’s carbon reduction goals.
Sustainable Aviation Fuel is a biofuel with chemical properties similar to traditional jet fuel but with a significantly lower carbon footprint. SK Energy’s co-processing method allows for the simultaneous production of both petroleum and SAF by integrating bio-feedstocks into the existing oil production process. This cutting-edge technology is supported by a dedicated five-kilometer pipeline to ensure the continuous flow of bio-feedstocks, making SAF production efficient and sustainable.
Leading the Way in SAF Production
Once the SAF production line becomes fully operational, SK Energy will complete its value chain, which includes raw material procurement, production, and sales. The company has strategically invested in waste-based raw material suppliers through SK Trading International, ensuring a steady supply of bio-feedstocks. Additionally, SK Energy is working with Infinium to develop e-fuels, further enhancing their SAF production capabilities by utilizing green hydrogen and carbon dioxide.
The company has already secured key certifications, including ISCC CORSIA, which validates its SAF production for the international aviation sector under the Carbon Offsetting and Reduction Scheme for International Aviation. SK Energy has also achieved ISCC EU certification under the European Union’s Renewable Energy Directive (RED) and ISCC PLUS for environmentally friendly products in voluntary markets, ensuring its SAF offerings meet global sustainability standards.
Meeting Global and Domestic Demand
The demand for SAF is expected to skyrocket in the coming years. According to the International Air Transport Association (IATA), global demand for SAF is projected to increase 70-fold by 2030, from 240,000 tons in 2022 to an astounding 18.35 million tons. Domestically, South Korea plans to mandate SAF blending for all international flights departing from the country by 2027. With its new SAF production line, SK Energy is well-prepared to meet this growing demand, both within South Korea and globally.
Starting early next year, SK Energy will supply SAF to Korean Air passenger flights, an essential step in aligning with the broader strategy of market expansion. This comes on the heels of a celebratory event at Incheon International Airport in August, where industry leaders and government officials recognized the importance of SK Energy’s achievement in producing domestically sourced SAF. The event, attended by the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, Incheon International Airport Corporation, and Korean Air, underscored South Korea’s commitment to leading the global transition toward sustainable aviation.
A Future of Greener Skies
As Hong Kwang-pyo, head of the strategy division at SK Energy, noted, “As the first company in Korea to achieve continuous SAF production through co-processing, we are well-prepared to meet the upcoming mandatory SAF blending requirements.” This statement highlights SK Energy’s pivotal role in South Korea’s transition toward cleaner aviation and its readiness to expand SAF production capabilities in response to both domestic and international market conditions.
At VURDHAAN, we recognize the immense potential of SAF in decarbonizing the aviation industry. Our expertise in Sustainable Aviation Fuels (SAF) and frameworks like CORSIA allows us to support businesses and governments as they navigate the complexities of adopting cleaner aviation solutions. By providing tailored sustainability strategies, we help companies integrate SAF into their operations, ensuring they meet regulatory requirements and contribute to a low-carbon future.
Conclusion: A Milestone for Clean Aviation
SK Energy’s leap into commercial SAF production is a significant development for South Korea and the global aviation industry. By leveraging advanced co-processing technology and forging strategic partnerships, SK Energy is not only helping to reduce aviation’s carbon footprint but also contributing to the global push for cleaner, more sustainable skies. As SAF demand continues to grow, this achievement marks a crucial step forward in the journey towards greener aviation.