Korean Air Purchases Carbon-neutral Jet Fuel from SK Energy

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  • Korean Air Purchases Carbon-neutral Jet Fuel from SK Energy

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    Korean Air [003490:KS] announced a partnership with South Korean petroleum and refinery company SK Energy [096770:KS] to use carbon-neutral jet fuel in its fleet on September 6, according to the airline’s press release on the same day. SK Energy will supply one-month carbon-neutral jet fuel to Korean Air’s domestic flights departing from Jeju and Cheongju. The carbon-neutral jet fuel is achieved through the purchase of carbon credits, which offset the total carbon footprint produced through fuel production, transport, and consumption.

    The global aviation industry contributes around 2% of all human-induced carbon emissions, according to Air Transport Action Group. Korean Air has recently taken several initiatives to improve its environmental performance. The airline issued ESG bond on July 7 to raise funds for the purchase of the eco-friendly Boeing 787 aircraft. On June 30, Korean Air announced a partnership with Hyundai Oilbank to develop and commercialize sustainable aviation fuel (SAF). SAF is a type of fossil fuel-free alternative jet fuel, commonly produced from algae, grains, plants, or waste by-products. While SAF has been shown to reduce carbon emissions by up to 80%, the alternative fuel is three times more costly than conventional fuel.

    While Korean Air has not announced commitment to carbon neutrality, many airlines in Asia have set net-zero targets. Japan’s largest airline ANA [9202:JP] announced its carbon neutrality goal by 2050 in April of this year. Cathay Pacific [0293:HK] pledged to achieve net-zero emissions by 2050 through SAF, carbon offset, and efficiency enhancement on May 20. Similarly, Singapore Airlines (SIA) [SIA:SP] also announced its commitment to achieve net-zero emissions by 2050, four days after Cathay Pacific’s announcement.

    Sources:

    https://www.koreanair.com/us/en/footer/about-us/newsroom/list/210906-korean-air-partners-with-sk-energy-to-adopt-carbon-neutra

    http://www.koreaherald.com/view.php?ud=20210906000795

    https://www.atag.org/facts-figures.html

    https://www.koreanair.com/mx/en/footer/about-us/newsroom/list/210630-korean-air-partners-with-hyundai-oilbank-to-adopt-sustain

    https://news.cathaypacific.com/cathay-pacific-commits-to-net-zero-carbon-emissions-by-2050

    https://www.koreanair.com/my/en/footer/about-us/newsroom/list/korean-air-to-issue-environmental–social-and-governance-bonds

    https://phys.org/news/2021-04-japan-ana-aims-carbon-neutrality.html

    https://www.singaporeair.com/zh_TW/tw/media-centre/press-release/article/?q=en_UK/2021/April-June/jr0221-210524

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