28 April 2022

First in Thailand - Bangchak and BBGI Ink MoU with Thanachok Oil Light to Produce Sustainable Aviation Fuel from Used Cooking Oil Moving towards Low Carbon Economy and Fully Applying BCG Economy Model

Chaiwat Kovavisarach, President and Group Chief Executive Officer, Bangchak Group, and Kittiphong Limsuwannarot, President and Chief Executive Officer, BBGI Public Company Limited, signed a memorandum of understanding for the procurement of raw materials, products, plant construction, and retail of Sustainable Biofuels with Tanawat Linjongsubongkot, Managing Director, Thanachok Oil Light Company Limited, Thailand’s leader in integrated vegetable oil business for over 40 years, as a preparation for the construction of a new production plant within Bangchak Refinery to manufacture Sustainable Aviation Fuel (SAF) from used cooking oil, and related biofuel products for domestic and international markets. Initial plans will soon see the commencement of SAF production at a maximum capacity of 1,000,000 liters per day.

Sustainable Aviation Fuel (SAF) is a GHG emissions reducing alternative captivating global interests due to the up to 80% reductions in carbon reductions through the entire product life cycle. Thailand’s yearly consumption of vegetable oil of around 900,000 liters, which is constantly growing, presents an opportunity of creating value from used cooking oil to address the demand for SAF, which is rising constantly, as well as reducing GHG emissions in line with Bangchak Group’s 2050 Net Zero GHG Emissions target, and fully integrating the Bio-Circular-Green (BCG) economic development model emphasized by the government in action.