HD Hyundai Oilbank said on the 22nd that it signed a contract to supply sustainable aviation fuel (SAF) for Korean Air's Incheon–Kobe, Japan route. The contract runs from September this year through 2026, and HD Hyundai Oilbank will supply fuel for about 90 aircraft on the route.
HD Hyundai Oilbank produces SAF using a co-processing method based on the global eco-friendly certification scheme, the International Sustainability and Carbon Certification for CORSIA (ISCC CORSIA). The co-processing method feeds bio-based feedstock together with conventional feedstock into existing refining facilities.
Starting this year, mandatory blending of SAF is being introduced in earnest worldwide. European countries plan to mandate a plan that begins at 2% this year and blends SAF up to 70% by 2050. Japan has set a plan to replace 10% of aviation fuel sales with SAF by 2030. Korea also plans to gradually expand the mandatory SAF blending ratio for international flights, starting at 1% from 2027, to 3–5% in 2030 and 7–10% in 2035.
In June last year, HD Hyundai Oilbank became the first in Korea to export SAF to Japan. A HD Hyundai Oilbank official said, "This contract is significant in that commercial supply has begun ahead of the domestic SAF blending mandate that will take effect in 2027," adding, "Through this supply, HD Hyundai Oilbank plans to strengthen its strategic relationship with Korean Air, the largest airline in Korea, and further solidify its position in the SAF market."