A view of the demo plant at SK Innovation’s Environmental Science & Technology Institute (Image provided by SK Innovation)
DAEJEON, South Korea, April 14 (Korea Bizwire) — At SK Innovation’s Environmental Science & Technology Institute in Daejeon, a powerful scent of used cooking oil hangs in the air, signaling an ambitious transformation: converting waste oil into sustainable aviation fuel (SAF).
Within the facility’s pilot plant, dark brown waste oil is refined through high-temperature, high-pressure reactors into a clear liquid—an eco-friendly fuel that can cut carbon emissions by up to 80% compared to traditional jet fuel.
The shift comes as SAF gains momentum globally, driven by regulatory mandates and growing pressure on the aviation sector to decarbonize.
“With SAF blending mandates expanding, demand is rising rapidly,” said Jeong Ho-seung, head of SK Innovation’s Sustainable Fuel Technology Team. “The global SAF market is projected to grow at an average annual rate of 46%, reaching 108 trillion won ($80 billion) by 2034.”
SK Energy, a subsidiary of SK Innovation, began commercial SAF production last September at its Ulsan Complex, marking a domestic first.
The facility, with an annual capacity of 100,000 tons, uses a co-processing method that integrates bio-based feedstocks into existing petroleum production lines. This dual-input system allows for continuous SAF output alongside other low-carbon products like bio-naphtha.
A display showcasing samples of Sustainable Aviation Fuel (SAF) and used cooking oil. (Yonhap)
Much of SK’s progress is underpinned by its in-house R&D. Engineers at the Daejeon institute developed the co-processing technology and validated it through pilot testing before scaling it to commercial operations.
Jeong emphasized the challenges of meeting stringent safety standards: “Aviation fuel is heavily regulated, and SAF must meet one of eight ASTM standards. We’re also developing technologies that allow us to use lower-grade, cost-effective waste oils.”
SK has now established a full SAF value chain—from feedstock procurement to production and global distribution. The company became the first Korean refiner to export SAF to Europe in January.
In March, it signed a bulk supply deal with Hong Kong’s Cathay Pacific, and has since begun supplying domestic carriers including Air Busan and Korean Air.
Governments worldwide are tightening SAF mandates. The European Union now requires a minimum 2% SAF blend in jet fuel, with targets rising to 6% by 2030 and 70% by 2050.
A view of the SAF co-processing facility at SK Innovation’s Ulsan Complex (Ulsan CLX) (Image provided by SK Innovation)
The United States has set a goal to fully replace conventional jet fuel with SAF by 2050. Korea, meanwhile, announced last August that all international flights departing the country must blend SAF starting in 2027.
Still, industry insiders warn that Korea’s policy support lags behind other nations. The EU offers carbon credits to airlines using SAF, while the U.S. provides tax credits of up to $1.75 per gallon for SAF producers. Japan also offers tax deductions of up to 40% for SAF-related investments and sales.
“To meet growing market demand, multi-trillion-won investments are required,” said one industry source. “Without government support, such investments are unfeasible. Proactive policy measures are essential to advance this strategic industry.”
Ashley Song (ashley@koreabizwire.com)
