Korean Air-Hyundai Oilbank, MOU for Biojet Fuel Cooperation

Woo Ki-hong, President of Korean Air (left), and Kang Dal-ho, President of Hyundai Oilbank (right), are taking a commemorative photo.

[Asia Economy Reporter Kim Hyewon] Korean Air is collaborating with Hyundai Oilbank to address climate change in the aviation sector.

On the morning of the 30th, Korean Air and Hyundai Oilbank signed a Memorandum of Understanding (MOU) for "Cooperation to Establish a Foundation for the Production and Use of Biojet Fuel" at Korean Air headquarters in Gangseo-gu, Seoul, with attendance from both companies' officials, including Woo Ki-hong, President of Korean Air, and Kang Dal-ho, President of Hyundai Oilbank.

This collaboration arises as the use of biojet fuel has emerged as a key response measure to climate change in the aviation sector, aiming primarily at the commercialization of biojet fuel and the exploration of business opportunities.

Biojet fuel, made from raw materials such as grains, plants, seaweed, and animal fats, can reduce carbon emissions by up to 80% compared to conventional jet fuel. However, its commercialization faces challenges due to its price being more than three times higher than conventional jet fuel and the lack of production and refueling infrastructure.

Based on this MOU, the two companies agreed to cooperate in areas including ▲establishing a domestic foundation for the production and use of biojet fuel ▲market research and R&D for domestic biojet fuel usage ▲raising awareness about biojet fuel and proposing related policies.

Although greenhouse gas emissions from aircraft operations account for only about 2-3% of global emissions, the aviation industry, which is expected to continue growing, requires climate change response strategies. Accordingly, Korean Air is applying various carbon reduction measures to achieve carbon-neutral growth and prepare for climate change risks.

In 2017, Korean Air became the first Korean airline to use jet fuel blended with biofuel extracted from plants such as corn, operating flights from Chicago to Incheon, which marked a turning point for the introduction and commercialization of biojet fuel in Korea.

Additionally, Korean Air participates in the International Civil Aviation Organization (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and is continuously renewing its fleet with eco-friendly and high-efficiency aircraft. Recently, it equipped the Airbus A220-300 with the latest engines, reducing carbon emissions per seat by about 25% compared to aircraft of the same class.

A Korean Air official stated, "We will expand the scope of cooperation with Hyundai Oilbank to revitalize biojet fuel domestically while continuing efforts to reduce carbon emissions in various sectors."

This content was produced with the assistance of AI translation services.