South Korean refiner SK Energy is set to supply Hong Kong-based airline Cathay Pacific with at least 20,000t of sustainable aviation fuel (SAF) by 2027, according to the refiner today.
The refiner said it will become the first South Korean refinery to supply commercial volumes of SAF to a Hong Kong-based airline, in a bid to "secure a leading position in the Asia-Pacific SAF market" with the region accounting for over 80pc of the refiner's export volumes.
The agreement comes after SK Energy exported an undisclosed volume of SAF to Europe in January, describing itself as the first South Korean refinery to do so.
SK Energy has a nameplate production capacity of around 80,000 t/yr of SAF and around 20,000 t/yr of other low-carbon products, such as bio-naphtha via co-processing, which integrates bio-feedstocks such as used cooking oil (UCO) and animal fats with traditional oil refining processes. The refiner began its commercial output of SAF in October 2024.
South Korea plans to require all international flights departing from its airports to use a mix of 1pc SAF from 2027 , with a target for the country to capture 30pc of the global blended SAF export market, it announced in August 2024. It remains unclear if co-processed SAF will be allowed to meet the country's mandate, but some South Korean refineries are optimistic.
The country also said in August it planned to establish a national standard, certification and testing method for SAF beginning in December 2024, but there have been no updates.