Bangchak Group as Thailand’s First and Only Producer and Supplier of Sustainable Aviation Fuel (SAF)
This Executive Talk was honored by
Mr. Kittiphong Limsuwannarot
Senior Executive Vice President, appointed to BBGI Public Company Limited
This Executive Talk was honored by Mr. Kittiphong Limsuwannarot, Senior Executive Vice President, appointed to BBGI Public Company Limited, to talk with us of the Bangchak group’s new investment step towards sustainable business. Bangchak Corporation Public Company Limited and BBGI Public Company Limited, along with Thanachok Oil Light Company Limited 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.
Mr. Kittiphong 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 Palm Fatty Acid Distillate (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.”
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.
Mr. Kittiphong Limsuwannarot
Senior Executive Vice President, appointed to BBGI Public Company Limited