Samsung E&A and Korean Air Join Forces... Accelerating 'K-SAF Alliance' Entry into U.S. Market

U.S. Market Leads Global SAF Production
Synergy Between Samsung’s Engineering and Korean Air’s Purchasing Power

Samsung E&A is accelerating its entry into the U.S. Sustainable Aviation Fuel (SAF) market by joining forces with Korean Air.

On November 21, Samsung E&A and Korean Air announced that they had signed a Memorandum of Understanding (MOU) for SAF cooperation at Korean Air’s headquarters in Gangseo-gu, Seoul. The MOU focuses on three main areas: identifying and reviewing overseas SAF production projects; reviewing and mutually supporting participation in long-term SAF offtake agreements; and Korean Air’s participation as a partner in the Samsung E&A ‘SAF Technology Alliance.’ The two companies have agreed to closely collaborate by leveraging their expertise and networks to establish a stable SAF production and supply chain and to explore new business opportunities.

Woo Ki-hong, Vice Chairman of Korean Air, and Namgung Hong, President of Samsung E&A, are posing for a commemorative photo. Samsung E&A

The two companies plan to focus on the U.S. market and are set to actively review ways to participate in local projects. The United States is considered the most prominent country in the SAF production market, as it has abundant raw materials for SAF production as well as world-class technology and infrastructure. Both companies will play key roles at the start and end of the SAF production process. Samsung E&A will provide plant engineering capabilities, while Korean Air will serve as a stable SAF purchaser, creating a ‘win-win’ model that drives the entire project forward.

Samsung E&A is considering participating in a second-generation SAF production plant construction project in the United States, leveraging its expertise in EPC (Engineering, Procurement, and Construction). The plan is to apply a second-generation SAF production technology based on ‘Gasification-Fischer-Tropsch (FT),’ which involves gasifying lignocellulosic waste at high temperatures and then converting it into liquid fuel. This expands the range of feedstocks beyond the limited materials used in first-generation SAF, such as waste cooking oil, to include non-edible and waste biomass like waste wood, significantly enhancing carbon reduction effects.

Korean Air is considering participating as an offtaker, purchasing SAF produced at these facilities. An offtaker plays a crucial role in stabilizing the foundation of new energy businesses by committing to buy a fixed amount of production over a certain period. Major airlines such as Delta Air Lines, Air France, and United Airlines have contributed to the global expansion of SAF production and supply chains through similar offtake agreements.

This collaboration is also symbolic as it pioneers new business opportunities in ‘Energy,’ one of the six strategic industries-AI, Bio, Culture Content, Defense, Energy, and Manufacturing (ABCDEF)-that the government is actively promoting. It is regarded as a model case of joint overseas advancement in the energy new business value chain.

A Samsung E&A representative stated, “By participating in the SAF project from its early stages together with Korean Air, a global offtaker, we will enhance project feasibility and gain the trust of project owners, thereby accelerating our market penetration. We will also expand our participation in new businesses in the energy transition sector to drive sustainable growth over the mid- to long-term.”

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