NEWS

HD Hyundai Oilbank will supply sustainable aviation fuel (SAF) to Korean Air aircraft operating international flights to Japan. This marks the company’s first entry into the Korean SAF market.

HD Hyundai Oilbank announced on September 22 that it has signed an SAF supply agreement with Korean Air for the Incheon–Kobe route. The contract runs from September this year through 2026, during which HD Hyundai Oilbank will provide enough fuel for around 90 flights on the route.

In June last year, HD Hyundai Oilbank became the first Korean company to export SAF to Japan, earning recognition in overseas markets for its biofuel technology. The new agreement is significant in that the company is beginning commercial SAF supply ahead of Korea’s SAF blending mandate, which will take effect in 2027. Through this supply contract, HD Hyundai Oilbank plans to strengthen its strategic partnership with Korean Air, the country’s largest airline, and further solidify its position in the SAF market.

HD Hyundai Oilbank produces SAF using a co-processing method based on ISCC CORSIA, a global eco-friendly certification under the Carbon Offsetting and Reduction Scheme. Co-processing refers to a production method in which bio-based feedstocks are processed together with conventional feedstocks in existing refinery facilities.

From this year, SAF blending mandates are being introduced in earnest around the world. European countries have begun with a 2% blending requirement this year and plan to raise it step by step to 70% by 2050. Japan aims to replace 10% of aviation fuel sales with SAF by 2030. Korea’s Ministry of Trade, Industry and Energy also announced on September 19 that it will implement an SAF blending mandate starting in 2027.

A representative of HD Hyundai Oilbank said, “We expect this entry into the domestic market to significantly boost confidence in HD Hyundai Oilbank’s SAF and other biofuel products,” adding, “Leveraging our advanced technology, we will closely monitor SAF policies and demand trends at home and abroad and work to expand our exports.”