30 August 2021
Bangchak Group targets Net Zero by 2050
On 15 August 2021, Chaiwat Kovavisarach, President and Chief Executive Officer of Bangchak Corporation Public Company Limited was invited to join an online discussion on “Direction for Thailand in Reducing CO2 Emissions” part of the seminar “Targeting Reduced Co2 Emissions and Thai Energy” organized by Than Settakij, stating that Bangchak Group targets becoming Net Zero by 2050 and Carbon Neutrality by 2030.
Bangchak Group businesses account for 1% of Thai GDP but emits only 0.2% of Green House gases
Chaiwat stated that the global oil industry will reach peak oil demand in the upcoming decades, and as a result companies in the industry will have to undergo structural changes.
The world currently produces about 45,000 million tons of Green House Gases, while Thailand accounts for about 0.9-1.0% of emissions (about 400 million tons/year), which compared to the Thai GDP, which accounts for 0.5% of global GDP, Thailand emits more than double its emissions, therefore it is imperative that Thailand reduces its emissions. Bangchak Group businesses account for about 1% of the Thai GDP, and emits only about 0.2% of Thai emissions.
Improve Energy Efficiency and Invest in Green Businesses and Carbon Credit Trading
Bangchak Group targets Net Zero by 2050 and Carbon Neutrality by 2030. Presently its businesses are aiming to achieve this goal, which can be separated into two main parts, namely improving overall production efficiency and utilizing products that reduces emission by 20% by 2024, and 30% by 2030. The remaining 70% requires additional mechanism such as investments in green businesses and carbon credit trading.
Business Growth with Reduced Carbon Emissions through Green Businesses
Initially, main Bangchak Group businesses are refining and service stations, have the added new business, especially green businesses, namely green power plants, bio-based business, upstream natural resource business, which have between 2014-2019 increased Bangchak EBITDA by 50% but emission have increased by less than 20%, as a result of Bangchak Group emission controls. In the next 7-8 years, it plans to expand its business by 2-3 times but to slowly reduce CO2 emission to Carbon Neutrality by 2030, which is important and challenging.
Green Innovation Reduces Emission in all Businesses
The refinery businesses has been reconfigured to be a niche products refinery, where in the future 30% of products from the refinery will not be from petroleum to reduce emissions from scope 3 (emission from end users). Simultaneously, increase energy efficiency and increase the use of clear energy will reduce scope 1 emission (emissions from production) and 2 (emission from energy used in production).
The marketing business, Greenovative Destination service stations have overall efficiency improvements such as the installation of solar panel rooftops, utilizing grey water, and installing EV chargers.
Green power plants, BCPG is the only Thai energy provider that produces all its energy from green electrons, or renewable energy, and is entering into the Energy Storage business.
BBGI’s bio-based product business uses synthetic biology innovation to produce various products form plant by-products instead of animals such as meat from plants, clothing, cosmetics, without the need for animal farms helping to reduce emissions, especially methane, and is establishing the Syn Bio Consortium with many sectors to build new technologies that enhances bio-based businesses.
New businesses focuses on frontier businesses that can change the world, most recently with the hydrogen business.
Supporting the Clean Energy Development through the Carbon Markets Club
Bangchak and 11 partnering companies established the Carbon Markets Club to support the development of clean energy businesses, promoting carbon trading which will aid the private sector to manage resources, whereby businesses or industries that have high emissions, and can buy carbon credits to offset their emissions, and using the funds to develop clean energy businesses without depending on public funding. The mechanism will close the 5-10 year period of the Energy Transition from a fossil based energy to green energy or clean energy, and enable these clean energy businesses to develop.
The Carbon Markets Club plans to organize trading on a quarterly basis, and invites new members from the private sector and individuals. For more information contact firstname.lastname@example.org or email@example.com