SK Energy, South Korea’s largest oil refiner, subsidiary of SK Innovation, will commence operations next month on the country’s first production line dedicated to sustainable aviation fuel (SAF). The facility will use bio raw materials like used cooking oils and animal fats, alongside petroleum inputs, through a co-processing method, allowing the integration of renewable feedstocks into existing production lines without significant infrastructural upgrades.
The move comes as global demand for SAF, an alternative fuel made from non-petroleum sources, is set to rise sharply. With regulations like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the European Union’s SAF mandates, SK Energy is positioning itself to meet the needs of airlines preparing for stricter emission reduction targets.
SK Energy installed a 5-kilometer pipeline to ensure a continuous supply of renewable feedstocks, and it plans to start supplying SAF to Korean Air in early 2024. The company is considering expanding SAF production based on market demand and regulatory developments. By launching this facility, SK Energy aims to complete an entire SAF value chain, from raw material procurement to manufacturing and sales.
