Bangchak Expands Sustainable Aviation Fuel Production to Meet Growing Demand
Bangchak is set to boost sustainable aviation fuel (SAF) production in Bangkok, aiming to supply 60% of its capacity to international partners and support the aviation industry’s shift to greener energy.
Bangchak Boosts Sustainable Aviation Fuel Production in Bangkok
Bangchak Corporation Plc is accelerating its investment in sustainable aviation fuel (SAF) to support the global push for greener air travel. The company plans to sell 60% of its SAF production capacity from its new facility in Bangkok, which is set to launch in the second quarter of this year.
Despite delays in SAF adoption by some aviation operators, Bangchak remains committed to its production schedule, according to Chaiwat Kovavisarach, CEO of Bangchak Group and President of Bangchak Corporation.
Advancements in Sustainable Aviation Fuel Production
The construction of Bangchak’s SAF facility, located near its oil refinery in Phra Khanong district, is already 93% complete. Once operational, the plant will produce sustainable aviation fuel at a capacity of 1 million liters per day, using used cooking oil as the primary feedstock.
The aviation sector is increasingly turning to sustainable aviation fuel, which can reduce greenhouse gas emissions by up to 80% compared to conventional jet fuel.
Strategic SAF Partnerships and Global Expansion
Bangchak has already secured agreements to sell 60% of its sustainable aviation fuel output. One key deal includes supplying certified used cooking oil-derived SAF to Singapore-based Shell International Eastern Trading. Additionally, Bangchak has signed an MoU with Japan’s Cosmo Oil, which aims to procure 300,000 kiloliters of SAF annually by 2030.
As part of the MoU, both companies will collaborate on carbon reduction initiatives, exploring innovative solutions such as SAF, bioethanol, and bionaphtha. They also plan to research low-carbon hydrogen utilization and transportation to further minimize emissions.
Investment in Sustainable Energy and Future Growth
Bangchak has allocated 50 billion baht this year to expand its investment portfolio. Of this, 20 billion baht will be directed toward its natural resource sector, including petroleum exploration and a potash mining project in Nakhon Ratchasima. Another 20 billion baht will support renewable energy projects, including a wind farm in Vietnam.
The company is also expanding its fuel distribution network, aiming to add 100 new petrol stations this year, increasing its total to nearly 2,200 stations nationwide. Its goal is to boost its market share from 28.9% in 2024 to 30% in the coming years.
By strengthening its sustainable aviation fuel production and partnerships, Bangchak is positioning itself as a key player in the transition to cleaner energy solutions for the aviation industry.
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