HD Hyundai Oilbank to Pioneer Korea's First Export of Sustainable Aviation Fuel

by Michael Herh (Business Korea) HD Hyundai Oilbank announced on June 16 that it will be the first in Korea to export Sustainable Aviation Fuel (SAF). The SAF produced by HD Hyundai Oilbank will be supplied to the Japanese trading company Marubeni and used by All Nippon Airways (ANA), marking the first time Japan has imported Korean-made SAF.

The Japanese government has announced a policy to replace 10% of its aviation fuel demand with SAF by 2030, in line with the International Civil Aviation Organization (ICAO)'s carbon emission reduction goals. This policy underscores Japan's commitment to sustainable aviation practices and highlights the growing demand for eco-friendly fuels in the region.

Park Jin-hyuk, Executive Vice President of HD Hyundai Oilbank's Global Business Division, emphasized the company's strategic vision, stating, "As global demand is increasing, we will secure the leadership in the global SAF market through active exports." He further added, "We will also expand the export of biofuels produced through co-processing methods, such as bio-naphtha and bio-diesel."

HD Hyundai Oilbank's move to export SAF is not only a testament to its innovation and adaptation to global environmental trends but also a strategic effort to tap into the increasing global demand for sustainable fuels. The company plans to actively target the market, anticipating an increase in SAF demand not only in Japan but also in Europe and other regions.

The co-processing method used by HD Hyundai Oilbank allows for the integration of renewable resources into existing refining processes, making the production of SAF more feasible and scalable. This method combines petroleum-based materials with bio-materials, enabling the production of eco-friendly fuels without the need for entirely new infrastructure.

Marubeni Corporation, a major Japanese trading company, and All Nippon Airways (ANA), a leading Japanese airline, are key players in this transaction. Their involvement underscores the importance of collaboration in the aviation fuel supply chain to achieve sustainability goals.

As the global market for SAF continues to grow, driven by environmental regulations and sustainability goals in regions like Europe and Asia, HD Hyundai Oilbank's initiative positions Korea as a significant player in the eco-friendly fuel sector. This development not only has positive implications for the environment but also for Korea's economy and its position in the global energy market. READ MORE

Excerpt from Future Fuels: HD Hyundai Oilbank’s biofuel production technology was accredited with the International Sustainability & Carbon Certifications (ISCC), global standards for recycled and bio-based materials.

The Korean refiner affiliated with HD Hyundai Heavy Industries has produced eco-friendly materials including sustainable aviation fuel (SAF) and bio naphtha using a co-processing method that utilizes both petroleum-based feedstocks and bio-based feedstocks, such as used cooking oil and refined soybean oil, in refining facilities.

The company has been producing green fuels by breaking down and refining heavy oils, such as bunker fuel, into lighter oils like gasoline, kerosene and diesel. It also generates SAF by adding hydrogen.

The biofuels produced through these processes have received three types of ISCC certification — EU, CORSIA and PLUS, according to HD Hyundai Oilbank. “The co-processing method incorporates our advanced refining technology,” said Jeong Im-joo, the company’s safety production division head. “We will continue to explore innovative plant operations to create various eco-friendly products.”

In the global aviation sector, significant research has been conducted on biofuels. The European Union (EU) mandated airlines to blend a minimum of two percent SAF with conventional jet fuel, beginning in 2025. Since 2022, France has enforced a requirement for the use of at least one percent SAF in aviation fuels. READ MORE