HD Hyundai Oilbank Supplies SAF to Korean Air International Flights... First Commercial Entry into Domestic Market

Supplying Incheon-Kobe Route Flights Until 2026
First Domestic SAF Supply Contract Ahead of 2027 Blending Mandate
"From First Export to Domestic Entry... Expanding the Market"

HD Hyundai Oilbank will supply Sustainable Aviation Fuel (SAF) to Korean Air’s international flights to Japan. This marks the first commercial entry into the domestic SAF market.

On September 22, HD Hyundai Oilbank announced that it had signed a SAF supply contract with Korean Air for the Incheon-Kobe route. The contract period runs from September this year through the end of 2026, during which HD Hyundai Oilbank will be the exclusive supplier of fuel for approximately 90 flights on this route.

Officials from HD Hyundai Oilbank are taking a commemorative photo on the 22nd at the Mild Hydrocracking Process (MHC), which produces SAF for HD Hyundai Oilbank, celebrating the supply of SAF to Korean Air's international flights. HD Hyundai Oilbank

This contract is significant as it initiates commercial supply ahead of the implementation of the domestic SAF blending mandate in 2027. In June last year, HD Hyundai Oilbank became the first company in Korea to export SAF to Japan, earning global recognition for its technological capabilities. By partnering with Korean Air this time, the company has also entered the domestic market, further strengthening its position in the SAF business.

HD Hyundai Oilbank produces SAF using a ‘co-processing’ method, which involves blending bio-based feedstocks with conventional refining facilities, based on international eco-friendly certifications. The company believes that utilizing existing refining infrastructure not only improves production efficiency but also provides advantages in expanding commercial supply.

Mandatory SAF blending is being implemented in full scale across the world. Europe plans to increase the mandatory blending ratio from 2% this year to 70% by 2050, while Japan has set a goal to replace 10% of its aviation fuel sales with SAF by 2030. In Korea, the Ministry of Trade, Industry and Energy announced on September 19 that the SAF blending mandate will take effect starting in 2027.

An official from HD Hyundai Oilbank stated, “We expect that the domestic entry will greatly enhance market trust in SAF and other biofuel products,” adding, “Based on our advanced technology, we will also work to expand SAF exports in line with changing policies and demand both domestically and internationally.”