Bangchak Group has reaffirmed its readiness to commence production of Sustainable Aviation Fuel (SAF), marking a significant milestone in its transformation from a renewable energy leader to a future energy pioneer. The company is the first in Thailand to produce 100% neat SAF from used cooking oil (UCO) and other alternative waste oils sourced from industrial and service sectors. The SAF is produced under the internationally recognised International Sustainability and Carbon Certification (ISCC) system.
Mr Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, said the project builds on over two decades of experience in UCO collection and biofuel production. By leveraging its existing refinery infrastructure, the company is able to significantly reduce construction and operational costs.
As of April 2025, the SAF plant’s construction progress has reached over 96%, with operations scheduled to begin in the second quarter of 2025. The launch will begin with a plant performance test run, followed by a gradual production ramp-up in line with market demand and existing sales contracts. The company has already secured purchase agreements with key customers and entered tolling arrangements, with further partnerships currently under negotiation.
Although many countries in Asia have yet to implement clear SAF blending mandates, global demand continues to accelerate, driven by the aviation sector’s pursuit of Net Zero emissions and long-term carbon reduction goals. The European Union, for example, has set a binding minimum target of 2% SAF use by 2025, offering a model for policy direction and investment incentives.
Mr Chaiwat noted that while a temporary market surplus may occur in the short term, a global supply shortfall is projected from 2030 onwards as SAF mandates are adopted more widely around the world.
Bangchak’s SAF initiative underscores its commitment to sustainability, innovation, and supporting the aviation industry’s transition to a low-carbon future.
