January 06, 2025 [Business Korea]- SK Energy announced on Jan. 5 that it has successfully exported sustainable aviation fuel (SAF) to Europe, marking a significant milestone as the first Korean oil refinery to achieve this feat. This development comes in the wake of the European Union’s (EU) mandate, effective since January this year, requiring all aircraft departing from European regions to use a minimum of 2% SAF. Europe remains the only global market with such a mandate, underscoring its commitment to reducing carbon emissions and combating climate change.
Last September, SK Energy established a co-processing production line and commenced commercial production of SAF. The co-processing method involves integrating a separate bio-feedstock supply pipeline into the existing petroleum product line, enabling the production of low-carbon products such as SAF and bio-naphtha. This innovative approach allows for the efficient and cost-effective production of sustainable fuels without the need for entirely new infrastructure.
On Jan. 4, SK Energy officials celebrated the loading of SAF for export to Europe at the SK Innovation Ulsan Complex pier. The SAF was produced using bio-based materials, including used cooking oil and animal fats, processed through the co-processing method. SK Energy’s successful export of SAF not only highlights its technological capabilities but also its strategic foresight in aligning with global environmental policies.
SK On Trading International, a subsidiary of SK Innovation, played a crucial role in this achievement by investing in a waste-based feedstock company. This investment enabled SK Energy to complete the value chain from raw material procurement to production and sales, ensuring a steady supply of sustainable raw materials for SAF production.
Lee Choon-gil, head of SK Energy Ulsan CLX, emphasized the company’s commitment to expanding its SAF production and export capabilities. “We plan to closely monitor market conditions, including changes in domestic and international SAF policies and demand fluctuations, and expand SAF production and exports,” he stated. This proactive approach will allow SK Energy to adapt to evolving market dynamics and maintain its competitive edge in the global SAF market.
SAF, produced from sustainable resources such as used cooking oil and animal fats, offers a smaller carbon footprint compared to conventional jet fuel. The adoption of SAF is seen as a critical step in mitigating the environmental impact of air travel.
Looking ahead, SK Energy plans to continue expanding the global SAF market, including domestic supply, in the first half of this year. By leveraging its established mass production system and market advantage, SK Energy aims to contribute to the global transition towards more sustainable aviation practices.
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