DS Dansuk wins $750 mn SAF material order from Phillips 66
Sang-Hoon Sung
Oct 29, 2024 (Gmt+09:00)
DS Dansuk Pyeongtaek plant 1
South Korea's DS Dansuk Co., which operates bioenergy, battery, and plastic recycling businesses, said on Monday it signed a 1 trillion won ($750 million) deal to supply Phillips 66, the US-based oil and gas refining giant.
DS Dansuk will supply pre-treatment materials for SAF production to Phillips 66 over three years, from December 2024 to November 2027.
The contract, which aligns with South Korea’s goal to boost SAF exports, is expected to generate revenue of 1.02 trillion to 1.26 trillion won, the company said, nearing its total 2023 sales.
SAF, derived from waste cooking oil, plastics, and palm oil, cuts carbon emissions by more than 80% compared to conventional jet fuel.
The US and European Union have introduced SAF mandates as part of net-zero targets, with the US planning to phase out conventional jet fuel by 2050.
The US oil and refining companies, including Phillips 66, are increasing investments in SAF production.
The company said in a statement that the deal underscores DS Dansuk’s role as South Korea’s top SAF material provider and integrates it into Phillips 66’s SAF supply chain.
With proprietary technology for collecting and refining SAF materials, DS Dansuk is positioning for further growth in the US and Europe, where SAF mandates are expanding.
South Korea plans to require SAF in 1% of aviation fuel for international flights starting in 2027.