Two SET-listed energy firms -- Bangchak Group and PTT Group -- are stepping up efforts to expand green businesses with efforts to produce sustainable aviation fuel (SAF).
PTT Oil and Retail Business Plc (OR), the oil distribution arm of PTT, has announced a plan to supply locally-made SAF to an airline operator, while Bangchak expects to start commercial production of the biofuel for aircraft in the middle of this year.
These moves align with the European Union requiring airlines flying to Europe to mix 3% SAF with jet fuel. The proportion is set to increase to 15-50% by 2050.
SAF produces up to 80% fewer greenhouse gas emissions than conventional fuel, according to media reports citing various forecasts.
OR and Bangkok Airways recently signed a letter of intent to procure and utilise SAF, marking the first initiative of this kind in Thailand.
"This partnership represents a major step in propelling Thailand's aviation industry towards a greener, more environmentally responsible future," said Chaipruet Watchareecupt, OR's vice-president for aviation and marine marketing.
OR will apply its expertise in distributing aviation fuel to supply SAF to Bangkok Airways' flight operations.
SAF is being produced by another PTT subsidiary, PTT Global Chemical (GC), which uses used cooking oil as a raw material.
GC's SAF production is estimated at 6 million litres a year in the first phase.
The Civil Aviation Authority of Thailand is preparing to announce the enforcement of SAF usage at 1%, scheduled to take effect in 2026. The amount will gradually increase to 3-5% in the future.
Bangchak, which also sees the increasing trend in SAF demand, is pushing ahead with SAF production near its oil refinery in Bangkok's Phra Khanong area.
The construction of its 8.5-billion-baht SAF factory has reached 96% completion as of April.
Bangchak plans to first make SAF, amounting to half of its full capacity of 1 million litres a day. The capacity of 1 million litres is calculated from an estimate that Thailand will use 5% SAF mixed with conventional oil, based on actual jet fuel supply of 20 million litres a day in 2019.
Chaiwat Kovavisarach, president of Bangchak Corporation Plc, said earlier he remains upbeat about the return on investment, even after reports that some countries in East Asia adjusted the timeline to enforce SAF usage.