Ethanol-based SAF gains traction in South Korea as aviation sector eyes 2030 mandates

Ethanol-based sustainable aviation fuel is gaining traction among US biofuel producers targeting South Korea's 2030 SAF blending mandates, with industry executives positioning alcohol-to-jet technology as a scalable alternative to waste oil-dependent production pathways at a Seoul conference that drew 270 policymakers, refiners and airline representatives.

The US Grains & BioProducts Council, in cooperation with the US Department of Agriculture's Foreign Agricultural Service and the Korea Biofuels Forum, hosted the 2026 Seoul Biofuels & Sustainable Aviation Fuel Conference on June 30 to discuss ethanol's role in meeting South Korea's aviation decarbonization targets and energy security needs, the USGBC said in a July 2 statement.

The event highlighted alcohol-to-jet technology's potential to address feedstock supply constraints that limit scaling of hydroprocessed esters and fatty acids-based SAF production.

US bioenergy company Gevo said ATJ technology utilizing corn-based ethanol offers advantages over the hydroprocessed esters and fatty acids process that currently dominates SAF production, citing the ability to leverage existing ethanol production facilities and petrochemical infrastructure to reduce initial investment costs while stabilizing feedstock supply for large-scale production.

"Countries and companies that are the first to implement ATJ projects will seize future market opportunities," Erin Heitkamp, vice president of SAF and Carbon Solutions for Gevo, said at the conference.

The push comes as South Korea prepares to implement SAF blending mandates from 2030, creating demand for production pathways that can deliver volumes beyond what waste cooking oil and animal fat feedstocks can support. Current SAF production relies heavily on HEFA technology using waste oils, but industry participants have pointed to limitations in feedstock availability as a constraint on scaling production to meet aviation sector decarbonization targets.

Price premium challenge

SAF currently trades at approximately three times the price of conventional aviation fuel, with airlines bearing up to four times the cost when accounting for supply chain factors, according to Kim Jooho, fuel supply chain manager at the International Air Transport Association, who spoke at the conference.

"There must be predictable policies to support this, such as production tax credits, investment support, and revenue stabilization mechanisms," Kim said.

Ethanol-based SAF development in South Korea would require establishing stable raw-material supply chains, with speakers highlighting the potential for expanded cooperation with the US, the world's largest ethanol producer and exporter. Emerson Wohlenberg, global energy consulting director at S&P Global Energy CERA, said strategic cooperation areas include building stable supply chains, SAF investment, ATJ technology transfer and establishing low-carbon certification systems.

"Compared to gasoline, biofuels offer both economic and environmental advantages," Wohlenberg said at the conference.

Quaim Choudhury, chief engineer at the American Bureau of Shipping, said ethanol represents the biofuel with the largest production base and most stable supply chain, with low carbon intensity ensuring both environmental performance and economic viability. The fuel's applicability extends beyond aviation to maritime decarbonization, with sustainable marine fuel development discussed as a parallel opportunity for emissions reduction in shipping.

Policy framework needed

Byoung-In Sang, director of the Clean Energy Research Institute and professor of chemical engineering at Hanyang University, emphasized that ensuring stable biofuel supply chains has become a national strategic issue linking industrial competitiveness and energy security.

"The strategy should not be a single fuel policy, but a comprehensive biofuel strategy" integrating road, air and sea transport, Sang said.

The conference attracted domestic media interest, reflecting South Korea's focus on biofuel implementation as geopolitical developments have emphasized transportation fuel security alongside decarbonization objectives, according to Cary Sifferath, USGBC vice president.

"South Korea is a highly valued export market for the US agricultural industry and reinforcing and expanding US ethanol's position there is just the next step in that great trade relationship," Sifferath said in the USGBC statement.

Haksoo Kim, USGBC director in South Korea, said the organization has worked to support the Korean government's ethanol implementation plans, including the 2030 SAF mandates.

"By highlighting the carbon-reduction benefits of ethanol, its economic viability and efficiency, we can help industry players and policymakers streamline adoption and scale upward," Kim said.

Platts, part of S&P Global Energy, assessed sustainable aviation fuel HEFA-SPK FOB Straits at $2,425/metric ton July 3, down $15/mt from July 2.