Bangchak to make jet fuel from used cooking oil

Bangchak to make jet fuel from used cooking oil

Joint venture sees good market potential for sustainable aviation fuel

The SET-listed energy conglomerate Bangchak Corporation plans to make biofuel for aircraft, also known as sustainable aviation fuel (SAF), from used cooking oil through a joint venture with a 200-million-baht budget, in a move to cut carbon dioxide emissions.

The SAF production facility is scheduled to open in the fourth quarter of 2024, according to BBGI Plc, Bangchak’s biotechnology arm.

SAF has similar properties to conventional jet fuel, but the new fuel can reduce carbon emissions by up to 80%, thus becoming an effective way to reduce the aviation industry’s carbon footprint.

Earlier in April, Bangchak, BBGI and Thanachok Oil Light Co, which runs an integrated vegetable oil business, signed a memorandum of understanding for SAF production, with a targeted capacity of 1 million litres a day.

The three companies formed a joint venture named BSGF Co, with 51% investment from Bangchak, 20% from BBGI, and 29% from Thanachok.

The cooperation with Thanachok includes the procurement of raw materials, plant construction and SAF sales.

Kittiphong Limsuwannarot, president and chief executive of BBGI, said the project is expected to become Thailand’s first SAF production facility, using cooking oil and biofuels as raw materials.

The SAF factory will be located near the Bangchak refinery complex in Phra Khanong district of Bangkok, he said.

The venture plans to sell SAF in both the domestic and international markets.

The use of biofuel for jets in Thailand started with a trial flight operated by Thai Airways International from Don Mueang airport to Suvarnabhumi airport about a decade ago, but the project was not developed for commercial use.


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