South Korea plans mix of sustainable aviation fuel for international flights from 2027
SEOUL, Aug 30 (Reuters) -South Korea said on Friday it aims to ensure all departing international flights use a mix of about 1% of sustainable aviation fuel (SAF) from 2027.
The step aims to prepare for a carbon offset and reduction scheme that becomes mandatory for members of the International Civil Aviation Organization (ICAO) starting from that year, the industry and transport ministries said.
"As the world's No. 1 exporter of aviation fuel, South Korea needs bold policy support to prepare for the SAF market as a promising new growth engine in response to global demand expansion," they said in a statement.
Six South Korean airlines, including flag carrier Korean Air 003490.KS, have begun, or plan, to mix 1% of SAF in the fuel for a single international route once a week starting from this year, the ministries added.
SAF, an alternative to petroleum jet fuel, is produced from agricultural and waste feedstocks.
Demand for SAF is expected to grow to 18.35 million tonnes in 2030 from 240,000 tonnes in 2022, the ministries said, citing data from the International Air Transport Association (IATA).
For the oil refining industry, the government said it is reviewing wider tax breaks for investment in developing SAF, as well as incentives to ease the burden of high SAF production costs in future.
Reporting by Joyce Lee; Editing by Clarence Fernandez
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