SK Energy has successfully exported a second shipment of hydrogenated biodiesel (HVO) to Europe, continuing its momentum in the eco-friendly fuel market following its first shipment last year. This move comes after the company made history in 2023 by becoming the first in South Korea to export Sustainable Aviation Fuel (SAF) to Europe, reports Maeil Business Newspaper.
According to the oil refining industry on July 27, SK Energy shipped approximately 6,000 tons of HVO from its Ulsan refinery to Europe in early June. The shipment is expected to arrive in mid-August. This marks the company’s first HVO export this year and second overall, after exporting around 5,000 tons in December 2023.
HVO is a cleaner alternative to conventional diesel, produced by processing vegetable-based materials such as used cooking oil with hydrogen. It serves as a direct replacement for diesel in vehicles like trucks, buses, and passenger cars, and can be used without modifying existing engines. Compared to earlier forms of biodiesel, HVO can cut greenhouse gas emissions by up to 90%.
Demand for HVO in Europe is growing rapidly, driven by the European Union’s stricter rules on fuel composition and carbon emissions. Under the EU’s Renewable Energy Directive (RED), member countries must ensure that at least 29% of fuel used in transport is renewable by 2030.
Reflecting this increased demand, HVO prices in Europe recently hit a seven-month high. On June 20, prices rose to $2,216 per ton, according to industry data. An industry official said, “Europe is placing more value on eco-friendly fuels like HVO due to tighter carbon regulations. By 2026, Europe’s HVO consumption is expected to reach its highest levels yet.”
SK Energy is positioning both HVO and SAF as central to its strategy for entering the low-carbon transportation fuel market. These fuels are seen as essential to reducing reliance on fossil fuels, especially as the EU steps up its clean energy goals.
Earlier this year, SK Energy completed its first export of SAF to Europe after beginning mass production at its Ulsan refinery in 2024. The company has also committed to supplying over 20,000 tons of SAF to Cathay Pacific Airways in Hong Kong by 2027.
