GS Caltex is set to supply sustainable aviation fuel (SAF) to DHL Express aircraft operating in South Korea under a one-year agreement, strengthening the Korean refiner’s position in the emerging market for lower-carbon aviation fuels.
The companies signed a memorandum of understanding at GS Tower in southern Seoul on Tuesday. Under the agreement, GS Caltex will provide 2,000 metric tonnes of neat SAF for DHL Express’ aircraft in Korea and cooperate on efforts to reduce emissions across aviation and logistics operations.
The agreement brings GS Caltex into DHL Express’ GoGreen Plus programme, which uses SAF to reduce emissions associated with air freight. As part of the arrangement, the programme will cover all products shipped by GS Caltex through DHL Express.
GS Caltex SAF supply targets Korean air freight
The SAF covered by the agreement is produced through co-processing, a process in which renewable feedstocks are processed alongside petroleum-based materials at an existing refinery.
The fuel has received ISCC EU certification, demonstrating compliance with requirements under the European Union’s Renewable Energy Directive.
Unlike blended SAF, the agreement covers neat SAF. This refers to SAF in its unblended form, which can subsequently be mixed with conventional jet fuel before being used in aircraft.
The partnership gives GS Caltex an additional commercial outlet for its SAF production while allowing DHL Express to incorporate SAF into its Korean aviation operations.
Kim Chang-soo, vice president of GS Caltex’s Mobility and Marketing Division, and John Pearson, CEO of DHL Express, attended the signing ceremony.
A GS Caltex official said the partnership represented another step in expanding the company’s SAF customer base and added that the refiner would continue developing its biofuel business in response to market demand.
GS Caltex plans dedicated SAF co-processing line
The agreement comes as GS Caltex prepares to increase its SAF production capability.
The company plans to complete a dedicated co-processing line by the end of 2026, which is intended to enable commercial-scale SAF production. The move reflects the refiner’s broader expansion into biofuels as demand for lower-carbon aviation fuel grows.
GS Caltex has been developing its SAF business in both domestic and international markets since 2023.
The company supplied fuel for Korea’s first SAF test flights with Korean Air as part of a biofuel demonstration project led by the Ministry of Trade, Industry and Energy. The project provided an early demonstration of SAF use in the Korean aviation market.
The refiner subsequently expanded into international SAF sales.
Korean refiner expands SAF export activity
In 2024, GS Caltex exported SAF blended with Neste’s neat SAF to Narita Airport in Japan, with trading company Itochu involved in the transaction.
According to the company, the deal made GS Caltex the first Korean refiner to commercially sell SAF certified under ISCC CORSIA, an international sustainability standard for aviation fuels.
The company is also working with a number of Korean airlines on certified SAF supplies, including Korean Air, Asiana Airlines, Jin Air, Eastar Jet and Aero K.
The growing list of airline and logistics customers indicates that GS Caltex is pursuing both aviation and air-freight applications as it expands its SAF activities.
DHL partnership adds logistics demand for SAF
For DHL Express, the agreement extends the use of SAF within its air-freight operations in Korea. The company’s GoGreen Plus programme is designed to use SAF as a means of lowering emissions associated with air transport.
The GS Caltex agreement is therefore relevant beyond the fuel supply itself, linking SAF production with demand from the logistics sector.
For GS Caltex, meanwhile, the one-year supply arrangement adds another customer segment to its expanding SAF portfolio as the company moves towards dedicated commercial-scale production.
The next major milestone will be the planned completion of GS Caltex’s dedicated co-processing line by the end of 2026.
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