SK Energy has become the first Korean oil refiner to export Sustainable Aviation Fuel (SAF) to Europe, aligning with the European Union’s new mandate on SAF usage.
On January 5, the company announced the milestone, marking a significant step in its low-carbon energy initiatives.
EU Mandates SAF Usage
The European Union now requires at least two percent of aviation fuel to consist of SAF, a policy effective from January 2025.
The regulation aims to reduce the aviation sector’s carbon emissions as part of the EU’s broader climate goals.
Produced Using Co-Processing Technology
SK Energy’s SAF is produced using Co-Processing technology, which incorporates bio-based materials such as used cooking oil and animal fats into existing petroleum production lines.
The innovative method allows for the seamless production of low-carbon products like SAF and bio-naphtha.
The company launched commercial SAF production in September 2024 and has an annual production capacity of approximately 100,000 tons of SAF and other eco-friendly products.
Global Value Chain Established
SK Energy partnered with SK On Trading International to ensure a steady supply of raw materials and an efficient production process. SK On Trading International invested in a waste-based raw material company.
Together, they have built a global value chain encompassing raw material acquisition, production, and sales.
R&D and Engineering Expertise Drive Success
SK Energy attributes its SAF export achievement to its advanced research and development capabilities. These capabilities are credited to the SK Innovation Institute of Environmental Science and Technology.
Additionally, the engineering expertise at SK Innovation’s Ulsan Complex played a critical role in establishing the robust production system.
Lee Chun-kil is the Chief Strategy Officer at SK Energy and head of SK Innovation Ulsan Complex. He said, “We will closely monitor domestic and international SAF policies. We will expand SAF production and exports accordingly.”
Aviation Industry’s Sustainability Goals
The global aviation industry is pushing for sustainable solutions to reduce carbon emissions.
The International Air Transport Association (IATA) aims to achieve net-zero emissions by 2050. This includes cutting CO2 emissions by fifty percent compared to 2005 levels.
As reported by msn.com, in line with this vision, the EU plans to increase SAF usage to 6% by 2030 and 70% by 2050. Similarly, the United States has committed to transitioning all aviation fuel to SAF by 2050.
SK Energy has pioneered the export of SAF. This positions the company as a key player in the global shift toward sustainable aviation solutions.
