Bangchak Corporation, a SET-listed energy conglomerate, aims to gather a significant volume of used cooking oil as a raw material for the commercial production of sustainable aviation fuel (SAF) starting next year.
The company, through its SAF production and distribution subsidiary BSGF, has recently established a memorandum of understanding (MoU) with New Biodiesel to procure used cooking oil sourced from southern provinces.
Additionally, Bangchak has acquired a 45% stake in Thanachok Vegetable Oil (2012) Co., the parent company of New Biodiesel, which focuses on palm oil production and the collection of used cooking oil.
According to Thamarat Paryoonsuk, senior executive vice-president for refinery and oil trading, “The MoU is in line with the circular economy concept.” In this model, waste materials like used cooking oil are repurposed into high-value products.
“This initiative also helps mitigate the improper disposal of used cooking oil, which poses environmental risks,” he added.
Thamarat emphasized that SAF is environmentally friendly. This biofuel, derived from used cooking oil and agricultural waste, can serve as a jet fuel substitute due to their comparable properties and the lower carbon footprint of SAF.
Bangchak has previously signed contracts with 17 companies, particularly in the food and restaurant sector, to acquire used cooking oil. Notable partners include Five Star Chicken Co., S&P Syndicate, and Thai Beverage, a Singapore-listed food and beverage company.
The company also plans to purchase used cooking oil from small food shops and street vendors at a rate of 20 baht per litre. They have launched a campaign, dubbed “Fry to Fly” (or “tod mai ting” in Thai), encouraging the public to avoid improper disposal of used cooking oil or repeatedly reusing it, which poses health risks.
Bangchak is currently constructing a 10-billion-baht SAF production facility, with an anticipated capacity of 1 million litres per day, located near its oil refinery in Bangkok’s Phra Khanong district. The company plans to commence commercial operations in the first quarter of next year.
The SAF produced at this facility will be sold to Sumitomo Corporation, a Japanese chemical company, although Bangchak has not disclosed the exact quantity of SAF to be supplied.
This SAF initiative is part of Bangchak’s strategy to achieve carbon neutrality by 2030, aligning with the International Air Transport Association’s “Fly Net Zero” initiative.
