A new sustainable aviation fuel company is being set up through a collaboration between Energy Absolute Plc (EA) and Bangkok Aviation Fuel Services (BAFS), in a bid to serve demand for cleaner fuel to reduce carbon dioxide emissions.
EA, a renewable energy and electric vehicle developer and operator, announced it was building a sustainable aviation fuel (SAF) production facility in Rayong.
Subsidiary EA Bio Innovation plans to form a joint venture with BAFS to develop sustainable fuel for aircraft currently using jet A-1, a kerosene grade for turbine-engine aircraft, said Vasu Klomkliang, executive vice-president of EA.
Known as biofuel for aircraft, SAF has the potential to replace jet fuel fully derived from fossil resources, which is blamed for rising carbon dioxide emissions. It can be produced from used cooking oil or agricultural waste.
EA expects to start making green fuel within the first quarter of next year, said Somphote Ahunai, founder and chief executive.
His company plans to use used cooking oil and palm fatty acid as raw materials to produce 130 tonnes of SAF a day in the first phase.
EA is allocating part of its 2024 investment budget worth 14 billion baht for the development.
According to Mr Vasu, many oil and aviation businesses have contacted EA Bio Innovation to buy SAF, but the company has yet to sign purchase agreements.
The Board of Investment is promoting SAF production by offering tax incentive packages to encourage companies to invest in this business.
Airports of Thailand Plc, which operates key airports in the country, is also interested in green fuel. It is currently in the process of teaming up with two companies to venture into the SAF business, said Mr Vasu.
Earlier, Bangchak Corp announced it was building a 10-billion-baht SAF factory at its oil refinery in Phra Khanong district of Bangkok. The facility is scheduled to open early next year.