SK Energy exports second HVO shipment to Europe, strengthening its green fuel strategy amid rising EU demand and regulatory pressures.
SK Energy has marked another milestone in the eco-friendly fuel sector by successfully exporting a second shipment of hydrogenated biodiesel (HVO) to Europe, reinforcing its growing presence in the global green energy market. This achievement follows the company’s pioneering move in 2023, when it became the first South Korean firm to export Sustainable Aviation Fuel (SAF) to Europe, according to several media reports.
Industry sources reported on July 27 that SK Energy dispatched approximately 6,000 tons of HVO from its Ulsan refinery in early June. The shipment is expected to arrive in Europe by mid-August. This delivery represents the company’s first HVO export in 2025 and its second overall. The initial shipment, involving around 5,000 tons, was made in December 2023.
Hydrogenated biodiesel, or HVO, is a renewable alternative to traditional diesel. It is derived by treating plant-based oils, such as used cooking oil, with hydrogen. The result is a fuel compatible with existing diesel engines in vehicles like buses, trucks, and passenger cars, requiring no engine modifications. HVO is recognized for its significant environmental benefits, including the ability to reduce greenhouse gas emissions by up to 90% compared to standard diesel.
The European Union’s increasingly stringent environmental policies, especially its Renewable Energy Directive (RED), are key drivers behind the rising demand for HVO. Under this directive, EU member states are obligated to ensure that at least 29% of the energy used in transportation comes from renewable sources by 2030. These regulations are accelerating the shift toward cleaner fuel options across the continent.
Reflecting this growing demand, HVO prices in Europe have recently surged. On June 20, the price of HVO reached $2,216 per ton — a peak not seen in seven months, as per industry data. A representative from the energy sector explained, “The tightening carbon regulations in Europe are elevating the importance of low-carbon fuels like HVO. By 2026, HVO consumption across Europe is expected to reach record levels.”
In alignment with this global trend, SK Energy has made strategic moves to solidify its role in the low-carbon transportation fuel market by focusing on both HVO and SAF. The company began full-scale production of SAF at its Ulsan refinery in early 2024 and successfully completed its first SAF export to Europe earlier this year. Furthermore, SK Energy has committed to supplying over 20,000 tons of SAF to Cathay Pacific Airways in Hong Kong by 2027, showcasing its commitment to supporting the aviation industry’s transition to cleaner energy sources.
Through these ongoing efforts, SK Energy is not only expanding its export portfolio but also contributing meaningfully to global decarbonization goals, as highlighted by several media reports.
