In a move to accelerate the production of sustainable aviation fuel (SAF), the Thai government, through its Ministry of Industry (MOI), has forged a partnership with six prominent local companies and their affiliates. The initiative aims to establish a robust supply chain for SAF feedstock derived from waste cooking oil. This collaboration is a key step towards decarbonizing Thailand’s aviation sector and supporting the nation’s broader renewable energy objectives, reports Reccessary.
The Department of Industrial Promotion (DIPROM), under the MOI, hosted a memorandum of understanding (MOU) signing ceremony with the participating industry players on March 31st.
A significant aspect of this partnership is that many of the involved companies generate substantial quantities of waste cooking oil as a byproduct of their regular operations. This provides a “cost-effective and readily available source of raw material for SAF production.” Currently, high SAF prices are partly attributed to limited feedstock availability, making waste cooking oil a particularly “viable option to help bring down costs.”
The six major companies joining forces with the Thai government in this endeavor are Central Group, Thai Beverage, Charoen Pokphand Foods, Thai President Foods, the Thai Food Processors Association, and Bangchak Corporation.
Minister of Industry Akanat Promphan stated that “discussions regarding potential collaboration with Bangchak Corporation have already commenced.” The envisioned plan involves utilizing the collected waste cooking oil to produce SAF while simultaneously promoting the Bio-Circular-Green (BCG) economic model. According to the Minister, “this approach will enhance the value of waste, reduce carbon emissions from industries, and contribute to mitigating the impacts of climate change.”
Beyond establishing a system for sourcing waste cooking oil, the initiative also aims to increase public awareness and encourage participation through various “campaigns, educational programs, and network-building efforts,” ultimately guiding the economy towards a low-carbon and sustainable future.
Bangchak CEO Chaiwat Kovavisarach offered two crucial recommendations to the government. These include “expanding the range of suitable feedstocks for SAF production” and “establishing clear and consistent regulations regarding SAF blending mandates, coupled with investment incentives.” Mr. Kovavisarach believes that these measures will significantly boost investor confidence, attract long-term investments in the sector, and solidify Thailand’s position as a regional leader in the clean aviation fuel market.
As a pioneering force in Thailand’s SAF development, Bangchak is on track to commence production at its facility in Bangkok during the second quarter of 2025. The estimated daily output is expected to be around 1 million liters. The company has already secured confirmed customers, including Shell Eastern Trading in Singapore and Japan’s Cosmo Oil.
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