SK Energy supplies 20,000 tons of SAF to Cathay
SK Energy has secured a contract to supply at least 20,000 tons of sustainable aviation fuel (SAF) to Cathay until 2027, marking a major step in expanding its presence in the Asia-Pacific SAF market. This follows SK Energy’s first SAF export to Europe in January. The company, which began commercial SAF production in September 2023 with a 100,000-ton annual capacity, is leveraging co-processing technology to meet rising global SAF demand. With regulatory mandates increasing in the EU, U.S., and Asia-Pacific, SK Energy aims to strengthen its leadership in low-carbon aviation fuel.
SK Energy is set to become the first Korean refinery to supply a large quantity of sustainable aviation fuel (SAF) to a Hong Kong-based airline. Following its successful SAF export to Europe in January, this achievement is expected to serve as a key steppingstone for SK Energy to secure a leading position in the Asia-Pacific SAF market, a strategic region for Korean refiners.
On March 10, SK Energy announced that it had signed a contract with Cathay, the home carrier of Hong Kong, to supply no less than 20,000 tons of SAF until 2027. Since November 2024, SK Energy has been supplying ISCC certified SAF to Cathay at Incheon International Airport. The two companies plan to gradually expand SAF usage to additional routes in the future.
This agreement marks another milestone for SK Energy, as it secured a stable SAF supply contract with Hong Kong’s largest airline just two months after becoming the first Korean refinery to export SAF to Europe. The Asia-Pacific region accounts for over 80% of SK Energy’s export volume, making it the company’s largest and most strategic market.
Hong Kong International Airport (Chek Lap Kok) ranked fifth globally in passenger numbers last year and serves as a key transit hub in the Asia-Pacific region. Leveraging this strategic export to Hong Kong, SK Energy ais to accelerate its efforts to capture the SAF market in the Asia-Pacific region.
Industry experts attribute SK Energy’s consecutive successes to its pioneering large-scale SAF production system among Korean refiners. In September last year, SK Energy established a production capacity of 100,000 tons per year and began commercial production of SAF using the co-processing method. Co-processing involves integrating bio-feedstocks supply systems into existing petroleum processing lines, enabling the production of low-carbon products such as SAF and bio-naphtha.
Global demand for SAF has been steadily increasing since the International Air Transport Association (IATA) passed a resolution in 2021 to reduce the aviation industry’s carbon emissions by 50% compared to 2005 levels by 2050.
The European Union (EU) mandated that, starting this year, all flights departing from Europe must use a minimum of 2% SAF in their fuel mix. This requirement will rise to 6% by 2030 and 70% by 2050. Meanwhile, the U.S. has set a target replace all conventional jet fuel with SAF by 2050.
Also in the APAC region, Singapore will implement a SAF levy with a 1% SAF usage target in 2026 and South Korea will implement a 1% blending SAF mandate in 2027.
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Source : Biomass Magazine
