S-Oil engages in the production of green petrochemical materials

[Courtesy of S-Oil]

South Korea’s oil refining company S-Oil Corp. is stepping up efforts to become the first in the country to incorporate bio-based raw materials into its refining processes.

S-Oil announced Monday that it is launching sustainable aviation fuel (SAF) and next-generation biodiesel production, as well as the manufacturing of environmentally friendly petroleum chemical materials like naphtha and polypropylene, utilizing initial quantities of bio-based feedstocks such as waste cooking oil, palm byproducts, and pyrolysis oil from plastic decomposition.

The incorporation of bio-based feedstocks and pyrolysis oil into the traditional refining process is set to enhance S-Oil’s commitment to low-carbon fuel production and eco-friendly petrochemical materials. Over the next two years, the company plans to introduce a total of 237,000 tons of bio-based feedstocks and up to 125,000 tons of pyrolysis oil into its refining processes.

S-Oil had secured regulatory sandbox approvals for the handling of pyrolysis oil and bio-based feedstocks in July and December of last year, respectively.

Following the swift completion of preparatory measures, including the installation of input facilities, the company has now commenced the actual injection of these sustainable raw materials into its production processes.

This move aligns with S-Oil’s strategic response to the global de-carbonization trend through its bio-based feedstock initiatives.

In April 2023, the European Union (EU) introduced regulations mandating a minimum percentage of SAF in aviation fuel.

According to the EU guidelines, the mandatory blending ratio for SAF in aviation fuel will gradually increase to 2 percent by 2025, 6 percent by 2030, 20 percent by 2040, and 70 percent by 2050.

In the United States, major airlines are unveiling long-term plans to incorporate SAF into their operations in line with the carbon-neutral agenda promoted by the Joe Biden administration.

Delta Air Lines, the largest U.S. carrier, aims to replace 10 percent of its total fuel consumption with SAF by the end of 2030.

Global market research firm Precedence Research forecasts a remarkable 15.9-fold increase in the global SAF market over the next eight years.