Bangchak to balance expansion and emission reduction
Bangchak Corporation Plc, the energy giant, has pledged to harmonise its business expansion with a reduction in greenhouse gas emissions over the next seven years. Chaiwat Kovavisarach, the CEO, emphasised the need to merge profitability with active initiatives to shrink the global warming-causing gases.
The company and its subsidiaries are due to receive an allocation of 150 billion baht for the period from 2024 to 2030. The budget will be split equally, with 30% going towards oil refineries and marketing strategies, and another 30% being directed to the upstream petroleum business.
The same percentage will be used to facilitate power generation through the development of clean energy. The remaining 10% will support Bangchak’s bio-based and new businesses.
Okea ASA, an oil and gas drilling firm owned by Bangchak and based in Norway, is ramping up its production capacity through new developments and the acquisition of petroleum assets. The firm is targeting a production of 100-kilo barrels of oil equivalent per day (KBOED) by 2030, a significant increase from 23 KBOED in the previous year and 40 KBOED projected for 2024.
With an ambition to reduce carbon dioxide emissions by 30% by 2030, Okea is integrating renewable energy into its oil and gas exploration and production processes.
Bangchak’s acquisition of Esso Thailand is set to boost its oil refinery business in the Sri Racha district of Chon Buri. This follows the integration of the oil refinery facilities of the two companies. The company plans to expand its petrol stations to 2,500 by 2030, an increase from 2,203 as of October 2023.
Carbon dioxide emissions
In a bid to support the drive to reduce carbon dioxide emissions in the aviation industry, Bangchak is poised to produce seven kiloton barrels per day of sustainable aviation fuel (SAF) by the first quarter of 2025. This production will take place at its refinery in Bangkok’s Phra Khanong district, which is slated to become an SAF factory.
In the sphere of bio-based businesses, Bangchak’s biotechnology arm, BBGI Plc, aims to produce one million litres of industrial enzymes by 2030. This is a substantial increase from 200,000 litres produced in the previous year.
BBGI had partnered with Biom Co, a spin-off startup from Chulalongkorn University, the previous year to bring new bio-based products to the market. BBGI hopes to have bio-based product sales contribute to 70% of total revenue, with the remaining 30% coming from the biofuel business.
As part of its non-oil business, Bangchak aims to increase the number of its Inthanin brand coffee shops to 2,000 by 2030, a significant increase from 1,030 in 2023.
According to Chaiwat Kovavisarach, Bangchak’s goal is to increase earnings before interest, tax, depreciation and amortisation to 100 billion baht by 2037, a significant jump from 44 billion in 2022, reported Bangkok Post.
