Bangchak Corporation Public Company Limited and BBGI Public Company Limited, along with Thanachok Oil Light Company Limited, held a joint press conference on a joint venture, BSGF Company Limited and signed a memorandum of understanding to be the first producer and supplier of Sustainable Aviation Fuel (SAF) from used cooking oil in Thailand at Bangchak Head Office, M Tower. With a production unit of an initial daily production capacity of 1 million liters, the joint venture plans to start supplying domestic and international aviation industries by Q4/2024, helping to reduce approximately 80,000 tons carbon dioxide equivalent of greenhouse gas emissions from air travel and transport annually.
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangckak Corporation Public Company Limited announced that Bangchak Corporation Plc. and its affiliate BBGI Plc. along with Thanachok Oil Light Co., Ltd. signed a joint venture agreement to establish BSGF Company Limited with a THB 8,000-10,000 million (app. US$ 220-280 million) investment, with the investment proportion of 51% held by Bangchak, 29% by Thanachok Oil Light, and 20% by BBGI respectively. BSGF will be Thailand’s first and only producer and supplier of Sustainable Aviation Fuel (SAF) from used cooking oil.
This joint venture is the amalgamation of the experience and expertise of the three partners to lay a solid foundation for BSGF in terms of the procurement of raw materials, production, and distribution. It draws on the strengths of Bangchak as operator of world class complex refinery and a pioneer in buying used cooking oil for the production of biodiesel in Thailand, and its expertise in oil trading via BCP Trading Co., Ltd. or BCPT, its affiliate, the largest independent oil trader in the Singapore market, Thanachok Oil Light’s long experience in the procurement of used cooking oil, and BBGI’s leadership in biofuel industry and producer of high-value bio-based products.
BSGF will begin the construction of a production unit of SAF from used cooking within Bangchak Refinery, expected to be ready for commissioning by the end of 2024, with an initial daily capacity of 1,000,000 liters. SAF can immediately be used by the aviation industry around the world without affecting engine performance, and production from BSGF will help reduce the industry’s greenhouse gas emissions by approximately 80,000 tons carbon dioxide equivalent annually (compared to present emission levels).
“BSGF is prepared to increase its capacity to address future SAF demand according to global SAF trends, aligned with European Union requiring progressive mixtures of SAF in aviation fuel for flights entering European Union countries (According to the resolution of the European Parliament in July for the level of SAF adoption from 2% in 2025 to 6%, 37% and 85% in 2030, 2040 and 2050 respectively), and measures from the International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA) which has set Net Zero target for the global aviation industry by 2050.”
Tanawat Linjongsubongkot, Managing Director, Thanachok Oil Light Company Limited stated that Thanachok is confident in this joint venture, recognizing the capability of Bangchak, which prioritizes the enhancing energy security in harmony with the environment and society, which complements with Thanachok’s corporate mission as an industrial group specializing in the production of biodiesel from used cooking oil, working closely with communities in collection to prevent repeated usage or improper disposal in public waterways. Presently, Thanachok Group has a used cooking oil collection network covering 77 provinces across the country, able to collect approximated 17 million liters monthly.
“Thanachok Oil Light will focus on the development of the mechanism and procurement of used cooking oil for SAF production, to advance used cooking oil collection and storage industry standards to stably and sustainably accommodate aviation industry demands.”
Kittiphong Limsuwannarot, President and Chief Executive Officer, BBGI Public Company Limited, stated that from its operational biodiesel plant expertise, technology, and feedstock, BBGI is able to sufficiently provide raw materials for SAF production, as well as units that are able to improve the quality of raw materials for SAF production such as PFAD and used cooking oil.
“SAF from used cooking oil presents both socio-economic and environmental benefits, completely in line with the BCG Economy Model, emphasizing the use of bio-resources to create value through the development of high-value products linking the Circular Economy, taking into consideration how to maximize and benefit of various materials, and the Green Economy, which goes beyond just economic development and must balance social and environmental development to ensure concurrent stability and sustainability.
Chaiwat concluded that the joint venture establishing BSGF to produce Thailand’s first and only SAF from used cooking oil, is a new chapter for Thailand’s energy industry which is transitioning to clean energy through green energy innovation. This also marks as an important milestone of Bangchak’s BCP 316 NET plan targeting Net Zero GHG Emissions in 2050, and steering Thailand towards its Net Zero target in 2065.