Greater demand for both cooking oil and used cooking oil is causing SET-listed Petchsrivichai Enterprise Plc, a local palm oil manufacturer, to expand production and run a campaign to acquire more used cooking oil for resale.
Used cooking oil is a key feedstock for producing biodiesel and sustainable aviation fuel (SAF), a biofuel for aircraft.
"The growing demand for used cooking oil in Europe and Asia presents a significant opportunity, driven by concerns over climate change," said Pornpipat Prasitsupaphol, chief operating officer at Petchsrivichai Enterprise.
Operators will no longer use SAF on a voluntary basis because they are committed to using it under the aviation industry's more serious efforts to reduce carbon dioxide emissions, he said.
SAF produces up to 80% fewer greenhouse gas emissions than conventional jet fuel, according to media reports citing various forecasts.
Petchsrivichai Enterprise is carrying out a campaign encouraging businesses and households to exchange their used cooking oil for fresh cooking oil. They can get one litre of fresh cooking oil in exchange for two litres of used cooking oil provided to the company.
Mr Pornpipat said the company will use part of 1.7 billion baht raised during its initial public offering last year to purchase new assets that will enable it to increase raw materials for producing palm oil and raise its production capacity, he said.
Petchsrivichai Enterprise, which sells palm-derived cooking oil under the Rintip brand, is strengthening its brand identity by changing its packaging in order to give its products a more modern look.
The company continues to seek new hypermarkets through which to sell its products and boost sales via online channels.
Last year the company saw sales of cooking oil grow by 30% to 24 million bottles. It earned 27.4 billion baht, an increase of 11.3% over the previous year, with net profit soaring by 90% to 630 million baht, up from 331 million baht in 2023.
Prices of crude palm oil in the global market are expected to increase this year because of a decline in exports from Indonesia, the world's second largest producer, which needs it for producing biodiesel, as well as less rainfall which would affect palm plantations in crude palm oil exporting countries, said Mr Pornpipat.
