04 June 2024

Bangchak Ready to Respond to Government's Call to Purchase B100 at a Standardized Price, Addressing Fluctuating Palm Oil Prices

Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited announced that in response to proposed solutions from the Department of Internal Trade to tackle declining palm oil prices, the company is poised to procure B100 at the standardized price set by the Energy Policy and Planning Office (EPPO) through BBGI Corporation, a major player in the biofuel industry and an affiliate of the Bangchak Group. BBGI will procure crude palm oil from extraction plants at a standardized price set by the Department of Internal Trade, in alignment with oil palm prices. This initiative aims to bolster support for farmers and promote the adoption of environmentally friendly energy sources.

Currently, Bangchak purchases approximately 1.3 million liters of B100 per day from BBGI, which has a production capacity of 1 million liters per day. This biodiesel serves as a primary raw material in the manufacturing of high-quality products at two world-class refineries: the Phra Khanong refinery and the Sriracha refinery.

Since 2005, Bangchak has championed the production and utilization of biodiesel, leveraging crude palm oil as its primary feedstock. This endeavor aligns with the late His Majesty King Bhumibol Adulyadej, Rama IX's vision to promote biofuel usage, thereby bolstering the nation's energy self-sufficiency. Furthermore, it not only provides an alternative energy source for the country but also bolsters the utilization of palm oil from the agricultural sector, which holds significant importance for Thailand's economy and society.