Launch of SAF Blending Mandate Task Force... "Roadmap to be Announced in First Half of Next Year"

The CORSIA SAF export vessel shipped by GS Caltex has arrived at the pier of Chiba Port, Japan, and is being unloaded into the aviation fuel tanks at Narita Airport, Japan. 2024.9.13. Photo by GS Caltex

On the 24th, the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the launch of the "Sustainable Aviation Fuel (SAF) Blending Mandate System Design Task Force (TF)" and held its first meeting at the Seoul Coal Hall, attended by more than 20 organizations including domestic refining and aviation industries, the Korea Petroleum Management Service, the Korea Transportation Safety Authority, and the Korea Energy Economics Institute.

This public-private joint TF is part of the "SAF Expansion Strategy" announced by the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport last August. Starting with the TF launch, the government plans to continue follow-up measures such as establishing domestic production facilities, securing raw materials, and developing technologies.

The TF will gather diverse opinions from industry, academia, and research experts necessary for the introduction of the SAF blending mandate system. A government official stated, "Considering domestic SAF supply conditions, SAF price trends, and global developments comprehensively, we plan to establish a mid- to long-term SAF blending mandate roadmap in the first half of next year."

At the meeting, the task force analyzed the European Union (EU)'s SAF blending mandate system, which will be fully implemented from 2025, to derive implications for designing a system suitable for domestic circumstances. Discussions were also held on the roles of related organizations such as the Korea Petroleum Management Service and the Korea Transportation Safety Authority.

According to the Ministry of Trade, Industry and Energy, attendees agreed that the SAF blending mandate system is a key means to create stable SAF demand and promote investment, and that major overseas countries such as the EU, the United Kingdom, and Japan are actively pursuing similar initiatives, making it necessary for Korea to introduce a system aligned with global trends.

However, it was emphasized that alongside the SAF blending mandate, strengthening incentives on both demand and supply sides?such as alleviating production and purchase cost burdens and supporting facility investments?is crucial for securing a leading position in the SAF market.

Yoon Chang-hyun, Director General of the Resource Industry Policy Bureau at the Ministry of Trade, Industry and Energy, said, "We will design a reasonable system to strengthen the competitiveness of the refining and aviation industries through continuous communication with the industry centered on the TF," and urged, "The industry should also proactively respond to the expansion of SAF through bold investments."

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