Driving Korea's Aviation Industry Towards Carbon Neutrality with Sustainable Aviation Fuel
Key Ideas
  • The International Air Transport Association aims to replace a significant portion of aviation fuel with Sustainable Aviation Fuel (SAF) by 2030 and 2050, setting ambitious goals for carbon neutrality.
  • South Korea's inclusion of SAF as a national strategic technology in tax laws provides tax credits for R&D costs, offering a boost to the domestic oil refining industry and signaling a turning point for the SAF market.
  • Challenges for revitalizing the SAF market in Korea include addressing economic feasibility, securing raw materials, investing in production facilities, and establishing a stable production and distribution system.
  • Collaboration between the government, refiners, airlines, and raw material suppliers is crucial for driving SAF usage, establishing a carbon-neutral aviation ecosystem, and preparing for future eco-friendly vehicles like hydrogen aviation and electric aviation.
Sustainable Aviation Fuel (SAF) is emerging as a crucial element in the aviation industry's journey towards carbon neutrality. The International Air Transport Association has set ambitious targets for replacing a significant portion of traditional aviation fuel with SAF by 2030 and 2050, emphasizing the industry's commitment to sustainability. In South Korea, SAF has been recognized as a national strategic technology, offering tax credits for research and development costs in the oil refining sector. This decision marks a significant opportunity for the domestic industry and a pivotal moment for the SAF market in the country. However, challenges lie ahead in making SAF a viable option in the market. Economic feasibility, raw material supply, investment in production facilities, and the establishment of a stable production and distribution system are crucial components that need attention. The United States has shown progress in this area through federal tax incentives and collaboration with private companies, underscoring the importance of government support and industry partnerships. To drive the adoption of SAF in Korea, collaboration between various stakeholders is essential. This includes not only the government and industry players but also refiners, airlines, and raw material suppliers. Establishing a stable production and distribution system will pave the way for a carbon-neutral aviation ecosystem, aligning with future trends in eco-friendly transportation. The future of the Korean aviation industry hinges on the successful implementation of SAF technologies and the establishment of a competitive position in the global market. By leveraging tax benefits, fostering R&D activities, and expanding production infrastructure, Korea can position itself as a leader in the SAF field. Collaboration and organic cooperation between the public and private sectors will be key in realizing the potential of SAF and driving the 'green transition' in aviation.
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