28 June 2023

Bangchak Makes Its Mark as Future Energy Leader Pioneering Thailand’s Aviation Industry with First Construction Agreement for Sustainable Aviation Fuel (SAF) Production Unit

Bangchak Group takes the Lead as a Future Energy Leader by producing Sustainable Aviation Fuel (SAF) from used cooking oil, the first and only in Thailand. The ceremony for the Construction Agreement of Sustainable Aviation Fuel Production Unit is signed between BSGF Company Limited and TTCL Public Company Limited, supporting the aviation industry’s reduction of carbon dioxide emissions, and fulfilling all three dimensions of the BCG Economy Model.

Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, stated that “Over the course of nearly four decades since Bangchak was established with a mission to create energy security for the country and sustainability for society and the environment. Today, we remain committed to fulfilling these goals, under the vision of “Crafting a Sustainable World with Evolving Greenovation” with the Refinery and Oil Trading Business Group as one of its core businesses. The business has evolved through various iterations, from the early days that relied on fossil fuels, to the first era that saw the introduction of ethanol and biodiesel blending into fuels in Thailand, for which Bangchak was acknowledged as the ‘Leader in Renewable Energy’. Bangchak refinery is now approaching a new era, poised to become a ‘Leader in Future Energy’ by pioneering the production of aviation fuel that can reduce carbon dioxide emissions by up to 80% throughout its lifecycle compared to conventional aviation fuel from fossil fuels, and which also adds value to used cooking oil through the “Fry to Fly” campaign.

Today marks a significant milestone as the signing ceremony for the construction of Thailand’s first and only Sustainable Aviation Fuel (SAF) production unit from used cooking oil between BSGF Company Limited - a joint venture between Bangchak Corporation Public Company Limited, BBGI Public Company Limited, and Thanachok Oil Light Company Limited, and TTCL Public Company Limited, an esteemed engineering and construction company from Japan, with more than 20 years of business experience with Bangchak.

The construction of the Sustainable Aviation Fuel (SAF) production unit from used cooking oil is a joint effort to support the aviation industry in reducing carbon dioxide emissions into the atmosphere according to the plans of the International Civil Aviation Organization (ICAO). SAF has garnered global attention as a key fuel in achieving targets for carbon dioxide emission reduction. Notably, the United States passed the Inflation Reduction Act of 2022 (IRA) last year, which provides incentives to producers through a tax credit of USD 1.75 per gallon of SAF. Similarly, Europe has adopted a mandate requiring a minimum portion of SAF in the overall fuel supply, with targets set at 2% by 2025, 5% by 2030, and 70% by 2050. Japan has also established a goal for international flights passing through Japanese airports, stipulating a SAF blending ratio of 10% by 2030.

The Sustainable Aviation Fuel (SAF) production unit at Bangchak refinery will incorporate Malaysian-based Desmet’s Pre-Treatment technology to effectively eliminate impurities and contaminants from used cooking oil collected from the “Fry to Fly” campaign and other channels. Additionally, the production process will involve a deoxygenation process, employing UOP Ecofining Technology from Honeywell UOP, USA., to alter and crack the molecular structure using hydrogen, which is an effective solution to produce Sustainable Aviation Fuel (SAF) from Honeywell UOP. The unit is projected to have a daily production capacity of approximately 1,000,000 liters and is scheduled for commissioning in the fourth quarter of 2024.

The signatories were Thamarat Paryoonsuk, Senior Executive Vice President, Refinery Business Group, Bangchak Corporation Public Company Limited, as Committee Chairman of BSGF Company Limited, and Wanchai Ratinthorn, President and Chief Executive Officer, TTCL Public Company Limited, with Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, Gwendolyn Cardno, Deputy Chief of Mission, United States Embassy in Thailand, Barry Glickman, General Manager, Sustainable Technology Solutions, Honeywell UOP, USA., and Khoo Kiak Kern, Managing Director, Desmet (Southeast Asia and China) as honorary witnesses, along with executives from government agencies and corporations.

Chaiwat concluded “Thank you all for the support and collaboration in driving significant progress today. Reducing carbon emissions is a crucial task for all sectors. The establishment of a Sustainable Aviation Fuel (SAF) production unit is another clear manifestation of Bangchak's diligent implementation of the BCP 316 NET plan, aiming for Carbon Neutrality by 2030 and achieving Net Zero GHG Emissions by 2050. It is also an integrated effort in developing the BCG Economy Model across three dimensions: Bioeconomy, Circular Economy, and Green Economy, to drive Thailand's economy in tandem with social development and environmental sustainability.”

The general public is encouraged to sell used cooking oil at participating “Fry to Fly” Bangchak service stations and collection points in the “Fry to Fly” initiative to be used for producing Sustainable Aviation Fuel (SAF), promoting health, protecting the environment, and generating additional income.