Singapore: Thai energy company Bangchak Corp said on Wednesday that it is still waiting for clear policy direction on Thailand’s planned mandate for sustainable aviation fuel (SAF) use, even as it ramps up production capacity, reports Reuters.
Bangchak began producing SAF earlier this year with the ability to make about 1 million litres, or 800 metric tons, per day. However, the company remains uncertain about how the government intends to roll out mandatory SAF blending rules.
“We are in a limbo,” said Gloyta Nathalang, Bangchak’s senior executive vice president, speaking at the APPEC energy conference in Singapore. “We have some markets, some agreements, but no details on a mandate.”
The company’s SAF unit is still in a test run and is expected to reach full commercial operations by early 2026. Nathalang noted that the facility is flexible and can switch to producing renewable diesel if market conditions demand.
“By 2026, we expected there would be a mandate,” she said. “Now we only have a few months left, there’s no policy or mandate yet.” She added that disagreements between government ministries over which agency should set the rules are delaying progress.
Bangchak has already signed supply agreements, including a deal with Shell Singapore’s trading arm late last year, according to the company’s website.
Industry analysts say policy clarity will be crucial for Thailand to build investor confidence and meet international aviation decarbonisation targets.
