DS Dansuk to supply $722 mn worth of bio aviation fuel to U.S. company

DS Dansuk to supply $722 mn worth of bio aviation fuel to U.S. company

최초입력 2024.10.29 10:48:05

CEO Han Seung-uk

DS Dansuk Co., a South Korean resource recycling company, has signed a deal to supply raw materials for sustainable aviation fuel (SAF) worth 1 trillion won to U.S. oil and gas giant Phillips 66 Co. over the next three years. The export value alone is equivalent to 95 percent of DS Dansuk’s revenue in 2023.
DS Dansuk announced on Monday that it signed a supply agreement with Phillips 66 for pretreated materials used in SAF production.
SAF refers to eco-friendly aviation fuel produced by recycling resources like corn or used cooking oil, or by capturing carbon from the atmosphere, in place of fossil fuels.
Compared to traditional jet fuel, SAF can reduce carbon emissions by up to 80 percent. Globally, 19 countries are already using SAF in commercial aviation.
The European Union, in particular, plans to make the use of SAF mandatory starting next year and to gradually increase the required blend ratio.
According to the agreement, DS Dansuk will supply SAF feedstock from December this year until November 2027. The contract value ranges from a minimum of $740.01 million to a maximum of $914 million, depending on the volume supplied.
Even at the minimum contract value, this represents 95.4 percent of DS Dansuk’s revenue of 1.07 trillion won ($773 million) last year.
To meet the growing demand for SAF feedstock, DS Dansuk has already expanded its production facilities.
The SAF feedstock plant in Pyeongtaek, Gyeonggi Province, which broke ground in September last year, is expected to be completed next month, with annual production capacity of 300,000 tons.
DS Dansuk is accelerating the development of high-value products, including SAF feedstock.
In April, the company completed a recycling facility for spent lithium-ion batteries at its Gunsan Plant 1, capable of processing 8,000 tons of spent lithium-ion batteries annually. This facility can recover up to 5,000 tons of active material (used in energy generation) each year.
Founded in 1965 as Nobel Chemical Industry Corp., DS Dansuk celebrates its 60th anniversary next year. The company has been performing well, with annual revenue surpassing 1 trillion won for two consecutive years in 2022 and 2023.
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DS Dansuk to supply $722 mn worth of bio aviation fuel to U.S. company

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