SK Energy, South Korea’s largest refiner and a subsidiary of SK Innovation, has announced the completion of the country’s first dedicated Sustainable Aviation Fuel (SAF) production line. This new facility, which utilizes advanced co-processing technology, is set to begin commercial production next month. This development represents a significant step in SK Energy’s ongoing efforts to lead the burgeoning SAF market, a growing sector within the refining industry, reported Skinno News
SAF is an aviation biofuel that shares similar chemical properties with traditional jet fuels but has a lower carbon footprint. The new SAF production line uses a co-processing method that integrates bio-feedstocks with conventional oil production processes, enabling the simultaneous production of petroleum and low-carbon products. A dedicated five-kilometer pipeline has been installed to continuously supply bio-feedstocks into the oil manufacturing process, facilitating uninterrupted SAF production.
As per media report, upon the start of commercial operations, SK Energy will establish a complete value chain for its SAF business, covering raw material procurement, production, and sales. Last year, SK Trading International, another SK Innovation subsidiary, invested in suppliers of waste-based raw materials to ensure a steady supply of bio-feedstocks. Additionally, SK Energy is partnering with Infinium to advance e-fuel technologies that use green hydrogen and carbon dioxide.
In June, SK Energy secured several key certifications to support SAF production and sales, including ISCC CORSIA, which officially recognizes SAF production for international aviation. The company also obtained ISCC EU certification under the European Union’s Renewable Energy Directive (RED) and ISCC PLUS certification for environmentally friendly products in the voluntary market.
Starting early next year, SK Energy will supply SAF to Korean Air for passenger flights, marking a critical step in its strategy for market expansion. This follows a recent event on August 30 at Incheon International Airport, where SK Energy, along with the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, Incheon International Airport Corporation, and Korean Air, celebrated the launch of commercially produced domestically SAF.
The global SAF market is expected to experience tremendous growth. According to the International Air Transport Association (IATA), global SAF demand is projected to increase nearly 70-fold, from 240,000 tons in 2022 to 18.35 million tons by 2030. Domestically, the Korean government plans to mandate SAF blending in all international flights departing from Korea starting in 2027.
“We are proud to be the first company in Korea to achieve continuous SAF production through co-processing and are well-prepared to meet the upcoming mandatory SAF blending requirements,” said Hong Kwang-pyo, Head of Strategy Division at SK Energy. “We will continue to closely monitor both domestic and international SAF policies and market conditions to explore further expansion of our SAF production capabilities.”
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