SK Energy Establishes Korea's First Dedicated Sustainable Aviation Fuel Production Line

Commercial Production to Begin Starting Next Month

A view of the facility capable of continuous production of sustainable aviation fuel (SAF) using the coprocessing method, with bio raw materials transported through dedicated tanks and pipelines newly invested by SK Energy. Photo by SK Energy

SK Energy is set to become the first in South Korea to establish a dedicated production line for Sustainable Aviation Fuel (SAF) and will commence full-scale commercial production starting next month.

On the 11th, SK Energy announced that it has equipped the country’s first dedicated SAF production line using the Co-Processing method and will begin commercial production next month. The plan is to produce SAF and other low-carbon products by inputting bio-based raw materials such as waste cooking oil and animal fats.

The Co-Processing method SAF production line that SK Energy has established integrates bio-based raw materials simultaneously with petroleum feedstock in the existing petroleum product production process to produce petroleum products and low-carbon products. A dedicated 5 km pipeline has been installed from the bio raw material storage tank to continuously supply bio raw materials into the petroleum product production process. This enables continuous SAF production.

With the start of commercial SAF production, SK Energy will complete the value chain from raw material procurement to production and sales to expand its SAF business. To secure stable bio raw materials, last year SK Innovation’s subsidiary SK Trading International invested in a waste-based raw material supplier. In addition to bio raw materials, SK Energy is also developing e-fuel technology using green hydrogen and carbon dioxide in collaboration with Infinium to secure synthetic crude oil-based fuels. E-fuel refers to fuel produced using electricity. It is a liquid fuel synthesized by combining carbon dioxide with hydrogen obtained through water electrolysis.

Furthermore, SK Energy obtained the 'ISCC CORSIA' certification in June, which officially certifies SAF production in the international aviation sector. Alongside this, SK Energy also acquired the ISCC EU certification for low-carbon fuel product production under the European Union’s Renewable Energy Directive (RED) and the ISCC PLUS certification for eco-friendly products in the voluntary market.

Based on these preparations, SK Energy plans to supply SAF to Korean Air passenger flights starting early next year. On the 30th of last month, SK Energy attended an event at Incheon International Airport commemorating the commercial operation of domestically produced SAF, alongside the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, Incheon International Airport Corporation, and Korean Air.

SAF is a global market with significant growth potential. According to the International Air Transport Association (IATA), global SAF demand is expected to increase approximately 70-fold from 240,000 tons in 2022 to 18.35 million tons by 2030. Domestically, plans are underway to mandate SAF blended fueling for all international flights departing from South Korea starting in 2027. As SAF demand grows, SK Energy will continue continuous SAF production using the Co-Processing method while also considering the introduction of dedicated SAF production facilities depending on market conditions.

Hong Kwang-pyo, Head of Strategy and Operations at SK Energy, stated, "As the first domestic case of continuous SAF production through the Co-Processing method, we are proactively responding to the SAF blending mandate policy, enabling immediate supply to airlines when SAF is needed." He added, "We will closely monitor domestic and international SAF policies and demand fluctuations to consider expanding SAF production."