Korea to develop Joint SAF Production Facility
6. March 2025South Korea’s four leading oil refiners—SK Innovation Co., GS Caltex Corp., S-Oil Corp., and HD Hyundai Oilbank Co.—are planning to jointly construct a sustainable aviation fuel (SAF) production plant. The project, recently discussed with the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transportation, may receive government support through subsidies and tax incentives. The refiners will share construction costs and operate the facility under a special purpose company. The plant is expected to be built in one of the country’s major petrochemical complexes, with an estimated investment exceeding 1 trillion won ($700 million) for a processing capacity of 250,000 tons of fuel. Pressure vessels containing fuel and similar equipment usually require KGS certification in order to be approved for import and sale in Korea.
The facility aims to improve SAF production efficiency, potentially converting 60-80% of bio-based feedstocks into SAF, a significant increase from the current yield of less than 10%. Except for SK Innovation, which already operates an SAF production line, this would be the first dedicated SAF plant for the other refiners. The initiative aligns with Korea’s efforts to maintain competitiveness in aviation fuel exports amid tightening global SAF mandates. By 2027, Korea will require 1% of aviation fuel to be sustainable, following similar policies in the EU. The government also plans to designate SAF as a national strategic technology, increasing tax reductions for SAF facilities from 3% to 15%, and is considering direct negotiations with palm oil-producing nations to secure stable SAF feedstock supplies.
Feel free to contact us any time if you need assistance or have any questions regarding Korean certifications like KC, KC EMC, KCs, KCs for explosion safety products or KGS factory registration.
Tel. Europe: +49-69-271 37 69 259
Tel. US: +1 773 654-2673
Email: info@korea-certification.com
For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.
