HD Hyundai Oilbank Supplies Sustainable Aviation Fuel (SAF) to Korean Air International Flights
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- 2025-09-22 08:38:12
- Updated
- 2025-09-22 08:38:12
Exclusive supply of HD Hyundai Oilbank to aircraft on the Incheon-Kobe route
"Entry into the domestic market following the first export in Korea..Expansion of exports"
[Financial News]
HD Hyundai Oilbank supplies Sustainable Aviation Fuel (SAF) to Korean Air's international flights to Japan. This is the first entry into the domestic SAF market.
HD Hyundai Oilbank announced on the 22nd that it has signed a contract with Korean Air to supply SAF for the Incheon-Kobe route. The contract period is from September this year to 2026, and HD Hyundai Oilbank will supply fuel for about 90 aircraft on the route.
Last June, HD Hyundai Oilbank exported SAF to Japan for the first time in Korea, gaining recognition for its biofuel technology in overseas markets. This contract is significant as it marks the start of commercial supply ahead of the domestic SAF blending mandate system, which will take effect in 2027. 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.
HD Hyundai Oilbank produces SAF based on the global eco-friendly certification of the Carbon Offsetting and Reduction Scheme for International Aviation (ISCC CORSIA) using a co-processing method. The co-processing method involves adding bio raw materials to existing refinery facilities.
From this year, the mandatory blending of SAF is being introduced worldwide. European countries plan to gradually increase the blend from 2% this year to a mandatory 70% by 2050. Japan plans to replace 10% of aviation fuel sales with SAF by 2030. The Ministry of Industry in Korea also announced on the 19th that the SAF blending mandate system will be applied from 2027.
A representative from HD Hyundai Oilbank stated, "Through this domestic entry, we expect the market credibility of HD Hyundai Oilbank's SAF and other biofuel products to increase significantly," and "Based on advanced technology, we will closely monitor changes in domestic and international SAF policies and demand to expand exports."
padet80@fnnews.com Park Shin-young Reporter