Aviation fuel to become more environmentally friendly
Bangchak and CP Foods join forces to produce sustainable aviation fuel in an effort to reduce greenhouse gas emissions
Bangchak Corporation has signed an agreement with Charoen Pokphand Foods (CPF) to purchase used cooking oil and animal fat for the production of sustainable aviation fuel (SAF).
Under the collaboration, CPF will offer used cooking oil and animal fat generated from food production and wastewater treatment to Bangchak at 21 baht a litre.
The company will source used cooking oil and animal fat from its food production facilities, wastewater treatment plants and restaurant brands in Thailand before expanding to its businesses abroad.
SAF will be produced at an oil refinery in Bangkok’s Phra Khanong district under the BSGF, a joint venture between Bangchak, BBGI and Thanachok Oil Light.
CPF chief executive officer Prasit Boondoungprasert said after the signing ceremony on Monday that the collaboration aimed to maximise resource efficiency and mitigate environmental impacts.
The collaboration is part of the company’s commitment to promoting food security and sustainable consumption.
“This partnership marks a significant step in driving both companies’ sustainable business strategies and is part of broader climate action efforts,” he said, adding that it would also help waste reduction under the circular economy.
Bangchak Group CEO and president Chaiwat Kovavisarach said the collaboration would foster the development of the bio-circular-green (BCG) and environment-social-governance (ESG) economic models, which play an important role in sustainable development.
He expects the collaboration to boost the value of waste from food production, promote environmental preservation and improve the quality of life for Thais.
Chaiwat explained that the project to produce SAF from used cooking oil kicked off in 2022. The aim is to reduce greenhouse gas emissions in the aviation sector by up to 80%.
Construction of BSGF’s oil refinery was around 70% complete and SAF production should start in the second quarter next year at a capacity of 1 million litres a day, he added.
