[Featured Stock] DS Danseok to Supply $1 Trillion Bio Jet Fuel to the US... Explosive Growth by Fully Replacing Conventional Jet Fuel

DS Danseok is showing strong performance. The news that it has signed a supply contract for pre-treated products intended for bio aviation fuel (SAF) worth 1.0216 trillion KRW with the major U.S. oil and natural gas company Phillips 66 appears to be influencing its stock price.

As of 10:26 AM on the 28th, DS Danseok is trading at 77,600 KRW, up 17.58% from the previous trading day.

DS Danseok explained that the contract period is from December 1 of this year to November 30, 2027. The expected amount based on the minimum quantity during the contract period is 1.0216 trillion KRW, and the expected amount based on the maximum quantity is 1.2618 trillion KRW.

Researcher Cho Jeong-hyun from Hana Securities stated, "DS Danseok is the top domestic biodiesel exporter, accounting for 70% of exports," adding, "Structural benefits from the growth of the sustainable aviation fuel (SAF) market are expected." He continued, "HVO is a second-generation biodiesel produced by hydrogenation technology that does not freeze even at low temperatures, making it suitable for use as SAF," and added, "It can reduce carbon emissions by up to 80%, contributing to greenhouse gas reduction."

Global HVO production is expected to grow at an average annual rate of 20% until 2030. SAF is gaining attention due to policy support from the U.S. and the EU.

Researcher Cho analyzed, "DS Danseok has established a 400,000-ton scale HVO pre-treatment plant at its Pyeongtaek Plant 1 by the third quarter and aims to produce 300,000 tons of SAF by 2025." He added, "It has signed MOUs for SAF fuel and raw material supply with Japan's largest refiner ENEOS, HMLP, Nomura Office, and Sapporo Oil, among others," emphasizing, "Growth in the bioenergy division's scale is expected from next year."

Researcher Cho explained, "SAF is expected to benefit globally from policies such as the U.S. aiming to replace 100% of conventional aviation fuel by 2050 and the EU's mandate for a 63% blend ratio," adding, "According to the U.S. Department of Energy, SAF has been announced as the only means for carbon neutrality in aviation fuel." He further forecasted, "Annual SAF production in the U.S. is planned to increase significantly from 5 million gallons in 2021 to 3 billion gallons in 2030 and 35 billion gallons in 2050."