GS Caltex Achieves Carbon Neutrality in the Sky... Supplies Biojet Fuel to Korean Air

The Nation's First 'Biojet Fuel Demonstration Promotion' Business Agreement
'Policy Demonstration for Expanding Eco-friendly Biofuel' Implementation

GS Caltex will supply bio-jet fuel for carbon reduction in the sky to Korean Air, the first of its kind in Korea.

On the 29th, GS Caltex announced that it signed a memorandum of understanding (MOU) for the first domestic bio-jet fuel demonstration project at the GS Tower in Gangnam-gu, Seoul, attended by Kim Chang-soo, Vice President of GS Caltex, Cho Sung-bae, Executive Vice President in charge of Materials and Facilities at Korean Air, and other officials from both companies.

GS Caltex will introduce bio-jet fuel and supply it to Korean Air, which will conduct demonstration flights. To this end, both companies will jointly establish the necessary infrastructure and environment for the introduction of bio-jet fuel. In the future, based on the demonstration results, the government plans to establish standards such as domestic bio-jet fuel quality to promote commercialization. This demonstration marks GS Caltex and Korean Air's participation in the government's biofuel business activation policy by starting the demonstration in line with the bio-jet fuel demonstration research promotion plan announced by the government on the 28th.

Huh Se-hong, President and CEO of GS Caltex Photo by GS Caltex

The International Civil Aviation Organization (ICAO) has agreed to strive to achieve carbon neutrality (net zero) by drastically reducing greenhouse gas emissions from aircraft by 2050, in line with the global low-carbon trend and the need to reduce greenhouse gases. However, aircraft fuel faces more volume and weight constraints than passenger cars and ships, so the transition to electrification and hydrogen fuel is expected to be slower than in other transportation sectors.

Sustainable Aviation Fuel (SAF) is expected to play a key role in reducing greenhouse gases in the aviation sector. SAF is a sustainable fuel produced by processing animal and vegetable oils or waste cooking oil. It can reduce carbon emissions by up to 80% compared to fossil fuels. Accordingly, the EU has mandated mixing at least 2% bio-jet fuel with conventional jet fuel from 2025, gradually increasing the blending ratio to 6% by 2030, 20% by 2035, and 70% by 2050. The United States also encourages the use of bio-jet fuel by providing tax credits.

Korean Air Airbus 330
[Photo by Korean Air]

Kim Chang-soo, Vice President of GS Caltex, said, "In line with the global low-carbon trend, we plan to reaffirm and verify the roles and functions of each company necessary for the introduction of bio-jet fuel domestically. We will actively cooperate with the government and public institutions to contribute to the promotion of bio-jet fuel commercialization."

Cho Sung-bae, Executive Vice President in charge of Materials and Facilities at Korean Air, said, "Bio-jet fuel is a key means for carbon reduction in the aviation sector, but it is true that it is greatly affected by various variables such as domestic and international policies, regulations, demand, and supply. Korean Air will cooperate with GS Caltex through this demonstration flight to establish a foundation for the activation of bio-jet fuel in Korea and strive to align with decarbonized energy policies."

As part of carbon neutrality, GS Caltex is building a value chain across the bio business, including biodiesel, bio-marine fuel, bio-jet fuel, and biochemicals. It plans to secure competitiveness through active investment in the global biofuel market. In July last year, it signed an MOU with LG Chem to establish a white bio ecosystem and is constructing a demonstration plant for the commercialization of eco-friendly bio raw materials. In April this year, it signed an MOU with HMM for the bio-marine fuel business, and recently signed an agreement with the global beauty company L'Or?al for the development and supply of bio-based cosmetic raw materials.