GS Caltex becomes first Korean company to export SAF to Japan

On the 13th, a GS Caltex SAF export vessel is connected to the aviation fuel tank at Narita Airport at the Chiba Port dock in Japan. (GS Caltex)

South Korea’s oil refining giant GS Caltex Corp. has become the first company in the country to export sustainable aviation fuel (SAF) to Japan.

This is the first time a Korean oil refinery has sold SAF certified by the International Civil Aviation Organization (ICAO) under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) on a commercial scale.

The shipment was approximately 5,000 kiloliters and was delivered to Narita Airport via Japanese trading company Itochu Corp. on September 13th, 2024.

As global carbon regulations and greenhouse gas reduction trends intensify, the aviation industry is increasingly being required to use SAF, which can reduce carbon emissions by up to 80 percent.

The Korean government recently announced an “SAF Expansion Strategy,” that mandates all international flights departing from Korea to use fuel containing at least 1 percent SAF starting in 2027. A leading exporter of aviation fuel, Korea is providing policy support to secure an early lead in the SAF market as a new growth engine for the energy sector.

In response, Korean oil refiners are accelerating their efforts to penetrate the SAF market.

The Korean refining industry has already set a record for gasoline exports to Japan in 2024 to date, capitalizing on its economies of scale and facility upgrades. According to the Korea Customs Service and Korea National Oil Corp. on Thursday, the industry‘s gasoline exports to Japan totaled $1.45 billion from January to August 2024, the highest figure since statistics were first recorded in 1992 and surpassing the previous year’s total amount of $1.38 billion.