[Click eStock] "DS Danseok, Benefiting from 2nd Generation Bio-Middle Oil SAF Growth"

Hana Securities forecasted on the 5th that DS Danseok will structurally benefit from the growth of the Sustainable Aviation Fuel (SAF) market.

Researcher Jo Jeong-hyun of Hana Securities explained, "HVO is a second-generation biodiesel manufactured using a hydrogen addition process," and "it does not freeze even at low temperatures, so it is used as SAF."

He added, "It can reduce carbon emissions by up to 80%, contributing to greenhouse gas reduction," and "the global production volume of HVO is expected to increase by an average of 20% annually until 2030."

Furthermore, he said, "SAF is gaining attention due to policy support from the US and the EU," and "DS Danseok is establishing an HVO pretreatment plant with a capacity of 400,000 tons at Pyeongtaek Plant 1 by the third quarter of this year." Researcher Jo emphasized, "The goal is to produce 300,000 tons of SAF by 2025," and "they have signed MOUs for SAF fuel and raw material supply with Japan's largest refinery ENEOS, as well as HMLP, Nomura Office, and Sapporo Oil."

He analyzed, "Since the US has announced a policy to replace 100% of conventional aviation fuel with SAF by 2050, and the EU has announced a mandatory blending policy with a 63% share, global policy benefits are expected." The US Department of Energy announced that SAF is the only means for carbon neutrality in aviation fuel. The annual production volume of SAF in the US is planned to increase significantly from 5 million gallons in 2021 to 3 billion gallons in 2030, and 35 billion gallons in 2050.

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