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In a landmark step toward decarbonizing aviation, Bangchak Group has officially launched Thailand’s first Sustainable Aviation Fuel (SAF) Production Unit at its Phra Khanong Refinery. Operated by BSGF Company Limited, a Bangchak affiliate, the unit is the country’s first dedicated facility capable of producing 100% Neat SAF at scale, marking a pivotal moment in Thailand’s clean energy journey. The facility, which began Plant Performance Test Runs in April, boasts an initial daily capacity of 1 million liters. Using Hydroprocessed Esters and Fatty Acids (HEFA) technology, it transforms used cooking oil and other fatty acid feedstocks into ASTM-compliant aviation fuel. The SAF unit operates under the International Sustainability and Carbon Certification (ISCC) scheme, overseeing the entire value chain—from raw material procurement to distribution. “This is Thailand’s first fully integrated Neat SAF production facility,” said Mr. Chaiwat Kovavisarach, Group CEO and President of Bangchak Corporation. “It exemplifies our commitment to energy innovation and reinforces our position as a pioneer in future energy solutions.” The project was developed in collaboration with Desmet (Belgium) for pretreatment processes and UOP Honeywell (USA) for advanced hydroprocessing technology, ensuring rigorous quality control from hydrogenation to molecular restructuring and fuel fractionation. In addition to Neat SAF, the unit also produces Bio-LPG and Bio-Naphtha as byproducts. Globally, SAF is emerging as a key lever in reducing aviation emissions, which currently account for roughly 492 million tons of CO2 annually, according to the IEA and ICAO. SAF can reduce lifecycle emissions by up to 80%, offering a scalable, cost-effective alternative to conventional jet fuels. Countries like the EU, UK, and Singapore have already introduced SAF blending mandates, and Thailand is currently reviewing similar regulations. Beyond climate benefits, SAF contributes to improved air quality. Its low sulfur and aromatic content helps reduce PM2.5 emissions and mitigates acid rain risks. Bangchak’s SAF initiative builds on two decades of experience in renewable energy. The journey began in 2000 with biodiesel R&D in partnership with the Royal Thai Naval Dockyard, followed by the country’s first commercial biodiesel launch in 2004. In 2008, Bangchak introduced a used cooking oil buy-back program to secure community-based feedstock. Today, through its “Fry to Fly” campaign, Bangchak collects used cooking oil at over 290 service stations nationwide, with plans to expand to 2,000 locations by the end of 2025. The company is also preparing to introduce a Book & Claim system, enabling verified carbon credit claims for SAF usage by airlines and passengers—a move aimed at accelerating sustainable aviation adoption. This development positions Bangchak as a regional leader in clean aviation fuel and aligns with broader national and global carbon reduction goals. |
