SK Energy Set to Begin Producing Sustainable Aviation Fuel (SAF) Commercially

On September 11, SK Energy, South Korea's largest refiner and a subsidiary of SK Innovation, unveiled the completion of the country’s first dedicated Sustainable Aviation Fuel (SAF) production line. This state-of-the-art facility, employing advanced co-processing technology, is scheduled to start commercial SAF production next month. This development is a key milestone in SK Energy's efforts to spearhead the growing SAF sector within the refining industry.

SAF is a biofuel for aviation with a chemical composition similar to jet fuel but with a significantly reduced carbon footprint. The new SAF production line combines bio-feedstocks with conventional oil refining processes, allowing for the simultaneous production of petroleum and low-carbon products. The facility features a dedicated five-kilometer pipeline that continuously supplies bio-feedstocks to the refining process, ensuring steady SAF production.

With the start of commercial operations, SK Energy will establish a comprehensive SAF value chain, covering raw material procurement, production, and sales. To secure a consistent supply of bio-feedstocks, SK Trading International, a subsidiary of SK Innovation, invested in suppliers of waste-based raw materials last year. Additionally, SK Energy is partnering with Infinium to advance e-fuel technologies that incorporate green hydrogen and carbon dioxide.

In June, SK Energy achieved several key certifications to support SAF production and sales. These include ISCC CORSIA, recognizing SAF for international aviation, ISCC EU certification under the European Union's Renewable Energy Directive (RED), and ISCC PLUS certification for environmentally friendly products in the voluntary market. Beginning early 2025, SK Energy will start providing SAF to Korean Air passenger flights, marking a crucial advancement in its strategy to broaden its market presence.

This initiative follows an event held on August 30 at Incheon International Airport, where SK Energy, together with the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, Incheon International Airport Corporation, and Korean Air, marked the launch of commercial SAF operations in Korea.

The global SAF market is set for substantial growth, with the International Air Transport Association (IATA) projecting a nearly 70-fold increase in demand, from 240,000 tons in 2022 to 18.35 million tons by 2030. In Korea, the government plans to require SAF blending in all international flights departing from the country starting in 2027.

Hong Kwang-pyo, Head of Strategy Division at SK Energy, remarked, “As the first company in Korea to achieve continuous SAF production through co-processing, we are well-positioned to meet the upcoming SAF blending requirements. We will continue to closely monitor domestic and international SAF policies and market trends to expand our SAF production capabilities further.”