High demand for SAF production expected by Bangchak in 2025

Bangchak Corporation, a leading energy conglomerate listed on the Stock Exchange of Thailand (SET), anticipates a significant demand for Sustainable Aviation Fuel (SAF) production once it enters the market next year. The prediction comes as awareness about the environmental impact of traditional jet fuel increases among companies.

Chaiwat Kovavisarach, Bangchak’s Group Chief Executive, revealed they had received a very warm welcome from prospective SAF buyers.”

Bangchak is investing 10 billion baht into a SAF production facility, currently under construction adjacent to its oil refinery in Bangkok’s Phra Khanong district. The plant, Thailand’s first dedicated to SAF production, is projected to be operational by the end of next year.

With a daily production capacity of 1 million litres, the facility is slated to start commercial operations between late next year and early 2025.

Upon the announcement of Bangchak’s SAF production plans, companies expressed great interest, with some even indicating their willingness to purchase every drop of SAF produced, according to Chaiwat.

Although the CEO did not disclose the names of these companies, he confirmed that contract agreements are likely to be finalised this December. In light of the strong demand, Bangchak is considering a feasibility study to look into the expansion of its SAF production capacity.

The venture into SAF production aligns with Bangchak’s various environmental, social and governance projects, which aim to achieve carbon neutrality by 2030.

Offering similar properties to jet fuel, SAF has a significantly smaller carbon footprint. Made from used cooking oil and agricultural waste, SAF can reduce greenhouse gas emissions by up to 80% compared to its conventional counterpart.

Chaiwat estimates that the use of SAF in Thailand’s aviation industry could potentially reduce carbon dioxide emissions by 80,000 tonnes annually, reported Bangkok Post.

The SAF production facility is set to be managed by BSGF Co. This joint venture includes Bangchak, BBGI (Bangchak’s biotechnology subsidiary), and Thanachok Oil Light Co, an integrated vegetable oil business.

Bangchak plans to utilise used cooking oil as a feedstock for SAF production under a campaign named Fry to Fly. This initiative aims not only to secure the necessary raw materials for production but also to discourage improper disposal or repeated reuse of used cooking oil. As part of the campaign, individuals can sell their used cooking oil to Bangchak for 13 baht per kilogramme at 44 Bangchak service stations.

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