SK Energy becomes Korea’s 1st refiner to export SAF to Europe
SK Energy announced in early January that it has successfully exported sustainable aviation fuel (SAF) to Europe, marking a first for a Korean refiner.
This milestone comes just four months after the company began commercial SAF production, completing a global value chain for SAF.
With the European Union initiating mandatory SAF usage this month, SK Energy said it has swiftly entered the market, establishing itself as a leading producer with its robust large-scale production system.
SK Energy’s SAF is produced through coprocessing methods that refine biobased materials such as used cooking oil and animal fats into renewable jet fuel.
Beginning in January, EU countries require that at least 2 percent of aviation fuel must consist of SAF.
Currently, Europe is the only global market with such a requirement.
“Industry analysts recognize SK Energy’s success in capitalizing on Europe’s SAF market, underscoring its status as the first Korean refiner to establish a large-scale production system for SAF,” the company stated.
SK Energy began commercial production of SAF in September, utilizing coprocessing technology.
This approach integrates biobased-material supply lines into existing petroleum-production processes, enabling the production of low-carbon products like SAF and bionaphtha.
SK Energy said it has secured a competitive advantage in exports by establishing a production capacity of approximately 100,000 tons per year for SAF and other low-carbon products.
“Our extensive production system, bolstered by the R&D expertise of SK Innovation Institute of Environmental Science and Technology, and the engineering proficiency at SK Innovation’s Ulsan Complex, was pivotal in achieving this export milestone,” said an SK Energy spokesperson.
In collaboration with its affiliate, SK On Trading International, which invested in a waste-based raw-material company, SK Energy has successfully closed the loop on a global value chain—from raw material acquisition to production and sales.
Looking ahead, SK Energy plans to expand its domestic supply and continue its growth in the global SAF market.
Since the International Air Transport Association pledged in 2021 to achieve net zero by 2050, global SAF demand has grown steadily.
The IATA aims to reduce the aviation industry’s CO2 emissions by 50 percent compared to 2005 levels by 2050.
In line with these goals, the EU has mandated that all aircraft departing from Europe must use at least 2 percent SAF, with plans to increase this to 6 percent by 2030 and 70 percent by 2050.
The United States also targets transitioning all aviation fuel to SAF by 2050.
“We will closely monitor domestic and international SAF policy changes and market demands to expand SAF production and exports,” said Lee Chun-kil, an executive with SK Energy and head of the SK Innovation Ulsan Complex.
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