Bangkok Aviation Fuel Services (BAFS) is not only keen on selling sustainable aviation fuel (SAF), but also wants to offer "real" SAF to its customers.
The authenticity claim refers to the raw materials used to make this aircraft biofuel being traceable, ensuring SAF is genuinely kinder to the environment.
Distributing and producing internationally acceptable SAF is among the company's measures to help it attain the goal of becoming a net-zero enterprise by 2050, striking a balance between greenhouse gas emissions and absorption.
BAFS already achieved carbon neutrality, a balance between carbon dioxide emissions and absorption, in 2019.
"This distinction is insufficient for us to ensure sustainable growth for our business," said BAFS president ML Nathasit Diskul.
The company wants to further reduce carbon dioxide and other greenhouse gases, which may involve its business operations, he said.
Promoting SAF as meeting environmental standards, along with plans to improve oil transport, a shift towards electric vehicles (EVs) and using more renewable energy will help BAFS reach its ultimate goal, said ML Nathasit.
REAL SAF
BAFS allocated 1.7 billion baht to establish the SAF business, including a factory to produce 3.2 billion litres of SAF a year and technology enabling the firm to inspect whether the SAF it buys from other suppliers meets standards set for International Sustainability and Carbon Certification (ISCC), he said.
ISCC is a global certification system checking the origin of sustainable feedstock, including agricultural biomass, biogenic waste, circular materials and renewables.
SAF, which can replace jet fuel because of their similar properties, can be made from agricultural waste, jatropha, used cooking oil and feedstock based on alcohol-to-jet technology.
This type of biofuel produces up to 80% fewer greenhouse gas emissions than conventional jet fuel, according to media reports citing various forecasts.
SAF will be blended with jet fuel to reduce the carbon footprint, according to BAFS.
"We expect the price of SAF to be 200 baht a litre, compared with the ex-refinery price of jet fuel of 20 baht a litre," said ML Nathasit.
"Some companies may want to make money from SAF sales by claiming their raw materials are not related to forest encroachment. Such claims must be proved."
BAFS plans to develop a digital audit system using blockchain technology to examine feedstock used to make SAF.
This system, scheduled to start operating in the first quarter next year, also facilitates the company's plan to make carbon accounts for customers.
This move corresponds with the Federation of Thai Industries' study of a plan to set standards for renewable resources that can be turned into SAF.
Raw materials need to be certified under acceptable standards to ensure they are suitable for producing SAF, said the federation.
BAFS plans to develop SAF in cooperation with other companies.
BAFS earlier agreed to form a joint venture with Energy Absolute Plc, a renewable energy and EV developer and operator, to co-develop SAF for aircraft using BAFS's refuelling service for jet A-1, a kerosene-grade fuel for turbine-engine aircraft.
BAFS also announced a venture with sugar miller Mitr Phol Co to jointly conduct a feasibility study on the manufacturing of SAF.
Former Prime Minister Prayut Chan-o-cha vowed at the 26th UN Climate Change Conference in 2021 that Thailand would take serious actions to deal with climate change and strive to reach carbon neutrality by 2050 and net-zero by 2065.
SMART TRANSPORT
BAFS is preparing to build a 52-kilometre oil pipeline connecting Saraburi and Ang Thong to facilitate oil transport from the East to the North, as well as reduce dependence on oil trucks that emit carbon dioxide.
The company is in talks with Thai Petroleum Pipeline on the project estimated to cost 1.2 billion baht, said ML Nathasit.
The new pipeline is scheduled to open in the third quarter of 2026, helping the government reduce carbon dioxide emissions from oil trucks.
Thai Petroleum Pipeline, which is mostly owned by PTT Oil and Retail Business Plc, operates an oil pipeline network linking refineries in the eastern region.
BAFS's oil storage facility in Laksi, in northern Bangkok, utilises this network to offer refuelling services at Don Mueang airport.
BAFS's subsidiary Northern Fuel Pipeline Transportation System Co also operates an oil pipeline connecting Bangchak Corporation's refinery in Ayutthaya's Bang Pa-in district with the northern province of Lampang.
BAFS said last year it believes the amount of oil transported via this pipeline would increase based on the company's marketing plan urging customers to shift from oil trucks to the pipeline.
ML Nathasit said the Ayutthaya-Lampang pipeline can reduce carbon dioxide emissions by up to 153,000 tonnes a year.
Northern Fuel Pipeline Transportation System also plans to supply renewable power to its oil pump systems, currently powered by fossil fuel-fired power plants.
The company will buy electricity from an on-ground solar farm operated by BCPG Plc, the power generation arm of Bangchak Corporation Plc, he said.
The pumping systems are located in the company's oil depots in Bang Pa-in and the northern provinces of Phichit and Lampang.
SIMPLE START
In preparation to operate a new oil pipeline and produce SAF, BAFS has already started transforming daily operations to more eco-friendly routines.
Similar to households, the company shifted from oil-powered cars to EVs and increased use of solar power, said ML Nathasit.
BAFS also uses electric shuttle buses to transport staff between Don Mueang and Suvarnabhumi airports.
This not only enables the company to cut carbon dioxide emissions, but also reduces its fuel expenses from 700,000 baht a month to 400,000 baht, he said.
Rooftop solar panels were installed on the company's buildings, resulting in a 40% decrease in electricity bills, said ML Nathasit.
"These measures help us cut greenhouse gas emissions without spending huge amounts of money or needing to wait for the authorities to enforce laws to control emissions," he said.
BAFS set a medium-term goal to cut greenhouse gases by 20% within 2030, before achieving its net-zero target by 2050.
