SK Energy, South Korea’s largest oil refiner, has made a significant leap in the global energy market by becoming the first South Korean company to export Sustainable Aviation Fuel (SAF) to Europe.

The shipment, which took place from SK Energy’s Ulsan facility, is seen as a key achievement in the push for greener fuel alternatives, as SAF is produced using bio-based feedstocks, including waste cooking oil and palm oil, rather than traditional fossil fuels. SAF has gained widespread attention for its potential to reduce carbon emissions significantly, offering a cleaner energy source for aviation.

This export to Europe is particularly noteworthy as the European Union has some of the strictest carbon neutrality regulations in the aviation industry, with a mandate for at least 2% SAF blending in aviation fuel starting from January 2025. In comparison, countries like Singapore are expected to introduce SAF blending requirements by 2026, and South Korea itself plans to implement similar regulations by 2027.

SK Energy’s move is seen as part of a broader global trend toward decarbonization in the energy sector. The company installed a co-processing production line in September 2024, marking the start of its commercial SAF production. This process involves connecting separate bio-raw material supply lines to existing petroleum product pipelines, allowing SK Energy to produce SAF alongside other low-carbon products such as bio-naphtha.

The company’s efforts are backed by its parent company, SK Innovation, which operates SK On Trading International, a subsidiary involved in the procurement of waste-based raw materials necessary for SAF production. SK Energy is now fully integrated into the SAF value chain, which includes the procurement of raw materials, manufacturing, and sales. This integration positions the company as a key player in the emerging SAF market.

As the demand for SAF is expected to grow exponentially, with the International Air Transport Association (IATA) forecasting a rise from 240,000 tons in 2022 to 18.4 million tons by 2030, SK Energy is already considering expanding its SAF production capabilities. The company plans to supply SAF to Korean Air Lines this year, further establishing its role in South Korea’s aviation sector’s transition to greener fuel options.

"We plan to continue expanding SAF production and exports while closely monitoring domestic and international SAF policy changes and market demand situations," said Lee Chun-gil, head of SK Energy's Ulsan CLX.

SK Energy’s successful SAF export to Europe not only positions the company as a leader in the low-carbon fuel space but also demonstrates the growing global demand for more sustainable aviation options, with significant long-term implications for the energy and aviation industries alike.