SEOUL, SOUTH KOREA — On March 13, 2025, South Korea’s bold strides in sustainable aviation fuel (SAF) production signal a strategic pivot, harnessing its top-tier recycling infrastructure to secure a foothold in the fast-growing SAF market. With an 86% waste recycling rate and a 56.5% municipal waste recycling rate—second only in the OECD—the country is poised to transform waste into a cornerstone of aviation decarbonization, as detailed by analyst Michelle (Chaewon) Kim.
Since August 2024, South Korea has accelerated SAF initiatives following a mandate requiring 1% SAF blending by 2027, safeguarding its status as the world’s largest jet fuel exporter. The government is designating SAF a ‘national strategic technology,’ offering tax credits of 15% for large firms and 25% for small businesses. A SAF Blending Mandate Design Task Force, launched by the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport, is crafting a roadmap by mid-2025.
“South Korea could leverage [its recycling] strength to become a leading SAF producer since reliable and consistent resource capture from recycling is key to creating second-generation fuels.” — Michelle (Chaewon) Kim
Major investments underscore this push. In February 2025, a KRW311 billion (US$2 billion) SAF experiment center was announced for Seosan, targeting completion by 2031. That same month, SK Innovation, GS Caltex, S-Oil, and HD Hyundai Oilbank committed KRW1 trillion (US$0.6 billion) to a joint SAF plant, set to process 250,000 metric tonnes annually. These moves align with the International Air Transport Association’s (IATA) projection of 449 billion liters of SAF needed by 2050 for net-zero aviation, with the market value expected to leap from US$0.6 billion in 2022 to US$45 billion by 2030.
SAF, which can cut CO2 emissions by up to 80% compared to fossil jet fuel, faces hurdles like feedstock scarcity and high costs—two to five times that of traditional fuel. The dominant hydroprocessed esters and fatty acids (HEFA) process relies on limited waste fats and oils, risking a shift to unsustainable first-generation feedstocks like palm oil, linked to deforestation and food competition. South Korea counters this by pivoting to second-generation feedstocks—waste-based resources like used cooking oil and municipal solid waste (MSW)—enabled by its recycling prowess.
Domestically sourced used cooking oil could feed HEFA and co-processing, while MSW supports Fischer-Tropsch (FT) and Alcohol-to-Jet (ATJ) pathways, reducing import reliance and costs. A robust collection network for these materials could spawn new businesses, enhancing energy security and SAF competitiveness. The International Renewable Energy Agency (IRENA) forecasts bioenergy, including SAF, comprising 18% of global energy by 2050, underscoring its role in hard-to-abate sectors.
South Korea’s recycling edge, paired with strategic governance, positions it to lead the SAF transition, balancing sustainability, economic equity, and aviation’s green future.
