Energy officials are drafting a new national oil plan to cover the development of sustainable aviation fuel (SAF), aiming to support the aviation industry's goal of reducing carbon dioxide emissions.
SAF is biofuel for aircraft. It can replace jet fuel because their properties are similar, while the former has a smaller carbon footprint.
"We are working on factors that can make SAF another mainstream fuel as well as support domestic production of this biofuel," said Patteera Saipratumtip, deputy director-general of the Department of Energy Business.
An investment incentive proposal for SAF manufacturing should be completed in early 2024, she said.
Policymakers should also consider reducing the excise tax for jet fuel to support SAF usage because its price is 2-3 times higher than conventional jet fuel, Nathasit Diskul, president of Bangkok Aviation Fuel Services Plc, said earlier.
The jet fuel excise tax is 20% of the retail price.
The International Civil Aviation Organization supports SAF usage as a way to help its members achieve a net-zero target, a balance between greenhouse gas emissions and absorption, by 2050.
Many countries and international organisations have shown their support for SAF usage.
The US offers a tax incentive to SAF producers, while the EU adopted a mandate requiring a minimum portion of SAF in the overall aviation fuel supply, with targets set at 2% by 2025, 5% by 2030 and 70% by 2050.
Japan established a goal for international flights passing through its airports, stipulating a SAF blending ratio of 10% by 2030.
In Thailand, Bangchak Corp Plc and Energy Absolute Plc have announced plans to produce SAF from used cooking oil.
National oil and gas conglomerate PTT Plc announced in 2023 its subsidiary PTT Oil and Retail Business Plc joined hands with national flag carrier Thai Airways International (THAI) to pilot SAF usage for a flight between Bangkok and Phuket.
The company did not offer further details, saying only the plan involves the cooperation of various companies, including Neste, which is the world's leading producer of SAF in Finland.
The pilot usage of SAF by THAI is in line with its goal to reduce its carbon footprint.