SK Energy Exports Sustainable Aviation Fuel To Europe
EU Countries Have Mandated That At Least 2% Of Aviation Fuel Must Consist Of SAF
SK Energy 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 commenced commercial production, completing a global value chain for SAF.
With the European Union (EU) initiating mandatory SAF usage this month, SK Energy has swiftly entered the market, becoming the first Korean refiner to establish a large-scale production system. On January 5 KST, SK Energy announced the export of SAF, produced through co-processing methods that refine bio-based materials such as used cooking oil and animal fats.
Since January, EU countries have mandated that at least 2% of aviation fuel must consist of SAF. Currently, Europe is the only global market with such a requirement. SK Energy began commercial production of SAF in September 2024, utilizing co-processing technology. This approach integrates bio-based material supply lines into existing petroleum production processes, enabling the production of low-carbon products like SAF and bio-naphtha. SK Energy has secured a competitive advantage in exports by establishing a production capacity of approximately 100,000 tons (90,718 tonnes) 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. In December, the Department of Energy announced it would loan Ford and SK ON up to US$9.63 billion for electric vehicle battery manufacturing.
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 (IATA) pledged to achieve net zero by 2050 plan in 2021, global SAF demand has grown steadily. The IATA aims to reduce the aviation industry’s carbon dioxide emissions by 50% 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% SAF, with plans to increase this to 6% by 2030 and 70% 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, chief sales officer of SK Energy, Head of SK Innovation Ulsan Complex.
