SK Energy has announced a groundbreaking achievement through the exportation of Sustainable Aviation Fuel (SAF) to Europe, marking the first major step for the South Korean refiner. This is merely four months since the company commenced its commercial production of SAF. It is a feat that makes SK Energy the first Korean company to establish a large-scale SAF production system.
Entry into the European Market Amid SAF Mandates
SK Energy has joined the fray and quickly entered into the market within the context that the European Union has just issued a mandatory order for SAF beginning January 2025. EU’s climate policy stipulates at least 2% SAF, starting from 2025 to increase up to 6% by 2030, and up to 70% by 2050. All these put it in the company’s position with the potential in the global momentum towards sustainability.
On January 5, SK Energy announced that the company had achieved successful exportation of SAF manufactured by its newly developed Co-Processing method. Co-Processing refines bio-based feedstocks – including used cooking oil and animal fats – simultaneously with traditional petroleum feedstocks into low-carbon fuels such as SAF.
A Robust Production System for SAF
The company has developed a production system that can annually produce 100,000 tons of SAF and other low-carbon products. Large quantities of SAF exported by SK Energy are attributed to its large-scale production capacity. This enables the company to meet the increasing demand for SAF worldwide while remaining competitive in a fast-changing market.
An SK Energy spokesperson said, “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.”
Building a Global SAF Value Chain
SK Energy strengthens its achievements in SAF production through strategic partnerships. SK Energy has teamed up with SK On Trading International, which invested in a company specializing in waste-based raw materials. This collaboration lets SK Energy complete the SAF value chain, from sourcing to production, improving efficiency and sustainability.
SK Energy plans to expand its domestic SAF supply and grow its share in the global SAF market moving forward. The company’s expansion supports IATA’s Net Zero by 2050 target, aiming to cut aviation CO2 emissions by 50% from 2005.
The company also plans to track changing SAF policies and market demands, aiming to expand its production and export capacity.
Also read: UK’s Sustainable Aviation Fuel Mandate Takes Effect to Decarbonise Air Travel
The demand for SAF is expected to continue rising as countries and organizations adopt stricter emissions reduction targets. The IATA’s Net Zero by 2050 plan, along with EU and U.S. policies, will likely boost SAF production growth. The EU’s SAF mandate is set to drive significant market growth, with Europe already leading in SAF adoption.
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